NATIONAL MASTER UPS FREIGHT AGREEMENTUPS FREIGHT AGREEMENT For the period of August 1, 2013 through...

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NATIONAL MASTER UPS FREIGHT AGREEMENT For The Period August 1, 2013 through July 31, 2018

Transcript of NATIONAL MASTER UPS FREIGHT AGREEMENTUPS FREIGHT AGREEMENT For the period of August 1, 2013 through...

Page 1: NATIONAL MASTER UPS FREIGHT AGREEMENTUPS FREIGHT AGREEMENT For the period of August 1, 2013 through July 31, 2018 UPS Freight, hereinafter referred to as the “Employer” and/or

NATIONAL MASTERUPS FREIGHT AGREEMENT

For The Period August 1, 2013through July 31, 2018

Page 2: NATIONAL MASTER UPS FREIGHT AGREEMENTUPS FREIGHT AGREEMENT For the period of August 1, 2013 through July 31, 2018 UPS Freight, hereinafter referred to as the “Employer” and/or
Page 3: NATIONAL MASTER UPS FREIGHT AGREEMENTUPS FREIGHT AGREEMENT For the period of August 1, 2013 through July 31, 2018 UPS Freight, hereinafter referred to as the “Employer” and/or

TABLE OF CONTENTSARTICLE 1. PARTIES TO THE AGREEMENT ...........................1

Section 1. Employees Covered.................................................1Section 2. Operations Covered .................................................1Section 3. Transfer of Company Title or Interest.....................1

ARTICLE 2. SCOPE OF AGREEMENT .......................................2Section 1. Agreement................................................................2Section 2. Non-Covered Units..................................................2Section 3. Accretions ................................................................2

ARTICLE 3. RECOGNITION, UNION SHOP, AND CHECKOFF...........................................................................3

Section 1. Recognition..............................................................3Section 2. Union Shop and Dues..............................................3Section 3. Dues Checkoff .........................................................4

ARTICLE 4. STEWARDS...............................................................6

ARTICLE 5......................................................................................8Section 1. Seniority...................................................................8Section 2. Layoffs...................................................................10Section 3. Recall .....................................................................11Section 4. Posting ...................................................................12Section 5. Probationary Employees........................................13Section 6. Purchase of Equipment..........................................13Section 7. Unassigned Work....................................................13

ARTICLE 6. SUSPENSION, DISCIPLINE AND DISCHARGE...14Section 1. Just Cause ..............................................................14Section 2. Notification in Writing ..........................................14Section 3. Expiration of Prior Disciplinary Action for

Future Use in Progressive Discipline ....................14Section 4. Prompt Action........................................................14Section 5. Suspensions.............................................................15

ARTICLE 7. LOCAL, REGIONAL AND NATIONALGRIEVANCE PROCEDURES......................................................15

Section 1. .................................................................................15

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Section 2. .................................................................................15Section 3. Resolution of Grievances ......................................16Section 4. Miscellaneous ........................................................17Section 5. Regional Grievance Panels....................................17Section 6. National Grievance Panel ......................................19

ARTICLE 8. PROTECTION OF RIGHTS ...................................21Section 1. Picket Lines: Sympathetic Action .........................21Section 2. Struck Goods .........................................................21

ARTICLE 9. LOSS OR DAMAGE...............................................21Section 1. .................................................................................21Section 2. .................................................................................22

ARTICLE 10. BOND AND INSURANCE...................................22Section 1. Bonds .....................................................................22Section 2. Insurance................................................................23

ARTICLE 11. UNIFORMS ...........................................................23

ARTICLE 12. PASSENGERS.......................................................23

ARTICLE 13. COMPENSATION CLAIMS.................................24

ARTICLE 14. MILITARY CLAUSE ............................................25

ARTICLE 15. EQUIPMENT AND SAFETY...............................26Section 1. Safe Equipment .....................................................26Section 2. Dangerous Conditions ...........................................27Section 3. Accident Reports ...................................................27Section 4. Equipment Reports ................................................28Section 5. Qualifications on Equipment.................................28Section 6. Hazardous Materials Program ...............................29Section 7. Union Liability ......................................................29Section 8. Government Required Safety & Health Reports...29Section 9. Equipment Requirements ......................................29

ARTICLE 16. EXAMINATION AND IDENTIFICATION FEES..............................................................31

Section 1. Required Examination ...........................................31

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Section 2. Identification Fees .................................................32Section 3. Company Will Furnish Equipment........................32Section 4. Identification of Company Representatives ..........33

ARTICLE 17. PAY PERIOD.........................................................33

ARTICLE 18. WORKDAY AND WORKWEEK.........................33Section 1. Casual Employees .................................................33Section 2. Full-time Employees .............................................34Section 3. Overtime ................................................................34Section 4. Work in Other Classifications ...............................35

ARTICLE 19. POSTING...............................................................35Section 1. Posting of Agreement ............................................35Section 2. Union Bulletin Boards...........................................35

ARTICLE 20. COOPERATION OF EMPLOYEES/FAIR DAY’S PAY.................................................35

Section 1. Cooperation of Employees, Company and Union 35Section 2. Fair Day’s Work for Fair Day’s Pay......................36Section 3. Safety and Health Committee ...............................36Section 4. Other Participation Teams .....................................36

ARTICLE 21. UNION ACTIVITIES/LEAVE OF ABSENCE.....37Section 1. Union Activities.....................................................37Section 2. Leave of Absence ..................................................37Section 3. Medical Disqualification ........................................38

ARTICLE 22. SEPARATION OF EMPLOYMENT ....................38

ARTICLE 23. TIME SHEETS, TIME CLOCKS AND VIDEO CAMERAS.............................................................38

Section 1. Time Sheets and Time Clocks ...............................38Section 2. Video Cameras.......................................................39Section 3. Computer Tracking Devices..................................39

ARTICLE 24. LEAVE OF ABSENCE..........................................40Section 1. Jury Duty Leave ....................................................40Section 2. Subpoenas, Summons and Voluntary Appearances .40Section 3. Family and Medical Leave....................................40

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Section 4. Funeral Leave ........................................................40Section 5. Personal Leave.......................................................41Section 6. Casual FMLA ........................................................41

ARTICLE 25. BENEFITS .............................................................42Section 1. Medical Plans ........................................................42Section 2. Discretionary Days ................................................43Section 3. 401(k) Plan ............................................................44Section 4. Holidays.................................................................44Section 5. Vacations................................................................45Section 6. Retirement .............................................................47Section 7. Other Benefits........................................................49

ARTICLE 26. WAGES..................................................................49Section 1. Full-time Local Cartage Employees......................49Section 2. Full-Time Road Employees...................................51Section 3. Casual Employees .................................................52Section 4. Clerical Rates .........................................................53Section 5. Paid for Time .........................................................54

ARTICLE 27. DRUG AND ALCOHOL TESTING .....................55Section 1. Controlled Substances Testing ..............................55Section 1.1 Employees Who Must Be Tested ........................55Section 1.2 Testing..................................................................56Section 1.3 Screening Test......................................................56Section 1.4 Confirmatory Test................................................56Section 1.5 Laboratory Testing...............................................57Section 1.6 Types of Testing Required...................................58Section 1.7 Pre-Qualification Testing.....................................58Section 1.8 Reasonable Cause Testing ...................................58Section 1.9 Post-Accident Drug Testing ................................59Section 1.10 Notification .........................................................59Section 1.11 Rehabilitation and Testing After Return To

Duty/SAP and Employer Duties .........................60Substance Abuse Professional (SAP) .................60Employer Responsibilities ..................................61

Section 1.12 Disciplinary Action.............................................62Section 1.13 Preparation for Testing .......................................62Section 1.14 Specimen Collection Procedures........................63

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Section 1.15 Specimen Shipping Preparations.......................66Section 1.16 Medical Review Officer ....................................67Section 1.17 MRO Determination..........................................68Section 1.18 Record Retention ...............................................69Section 1.19 Release of Drug Testing Information ................69Section 2. Alcohol Testing......................................................69Section 2.1 Employees Who Must Be Tested .......................70Section 2.2 Testing ................................................................70Section 2.3 Screening Test ....................................................70Section 2.4 Confirmatory Test ...............................................71Section 2.5 Types of Testing Required ..................................71Section 2.6 Reasonable Cause Testing ..................................71Section 2.7 Post-Accident Alcohol Testing ...........................72

Law Enforcement Testing ...................................73Section 2.8 Random Testing...................................................73Section 2.9 Rehabilitation and Testing after Return to Duty 73

Employer Responsibilities ..................................74Section 2.10 Discipline ..........................................................74Section 2.11 Preparation for Testing ......................................75Section 2.12 Specimen Testing Procedures............................75Section 2.13 Substance Abuse Professional (SAP) ...............77Section 2.14 Record Retention ...............................................77Section 2.15 Release of Alcohol Testing Information............78Section 3. Provisions Applicable to Drug and Alcohol Testing78Section 3.1 Leave of Absence for Rehabilitation...................78Section 3.2 Paid For Time ......................................................79Section 3.3 Off-Duty DUI ......................................................80Section 4. Training..................................................................80

ARTICLE 28. NON-DISCRIMINATION.....................................80

ARTICLE 29. MAINTENANCE OF STANDARDS ...................80

ARTICLE 30. MEAL PERIOD.....................................................81Section 1. Road Driver Meals at Via Points...........................81Section 2. City Driver Meals ..................................................81Section 3. Legal Requirements...............................................81

ARTICLE 31. LODGING .............................................................81

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ARTICLE 32. RAIN GEAR, GLOVES, AND YARD LIGHTS .................................................................82

ARTICLE 33. SANITARY CONDITIONS...................................82ARTICLE 34. JURISDICTIONAL DISPUTES............................82

ARTICLE 35. EMERGENCY REOPENING ...............................83

ARTICLE 36. GARNISHMENTS ................................................84

ARTICLE 37. SUSPENSION OR REVOCATION OF LICENSE AND EMPLOYEE’S BAIL .................84

Section 1. Employee Must Notify the Company of Violations 84Section 2. Compliance with Company Instructions ...............84Section 3. Employee Bail .......................................................85

ARTICLE 38. UNION AND COMPANY COOPERATION........85Section 1. Joint Cooperation...................................................85Section 2. Work Stoppages .....................................................85

ARTICLE 39. SEPARABILITY AND SAVINGS CLAUSE........85

ARTICLE 40. CHANGE OF OPERATIONS ...............................86

ARTICLE 41. [RESERVED].........................................................89

ARTICLE 42. INCLUSIVENESS OF CONTRACT....................89Section 1. Workweek Reduction ............................................89Section 2. New Equipment and Operations ...........................89Section 3. Extra Contract Agreements ...................................89

ARTICLE 43. OTHER MODES OF TRANSPORTATION .........89

ARTICLE 44. SUBCONTRACTING ...........................................90

ARTICLE 45. AIR CONDITIONING...........................................93

ARTICLE 46. SUPERVISOR WORKING ...................................93

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ARTICLE 47. MILEAGE RATES ................................................93Section 1. Mileage Rates .........................................................93Section 2. Mileage Determination..........................................94

ARTICLE 48. JOINT COMPETITION COMMITTEE................94

ARTICLE 49. DURATION ...........................................................94

Memorandum of Understanding....................................................94

Letter of Agreement.......................................................................94

Addendum to the UPS Freight Agreement Covering Over-the-Road and Local Cartage Operations ...........................95

National UPS Freight Agreement“Zone” Addendum..................100

Memorandum of Understanding..................................................102

Letter of Understanding...............................................................103

Letter of Understanding...............................................................103

Memorandum of Understanding..................................................103

Memorandum of Understanding..................................................104

Memorandum of Understanding..................................................106

Memorandum of Understanding..................................................106

Memorandum of Understanding..................................................107

Letter of Agreement.....................................................................108

Memorandum of Understanding..................................................108

Memorandum of Understanding..................................................108

Line Haul Driver Addendum .......................................................109

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Page 11: NATIONAL MASTER UPS FREIGHT AGREEMENTUPS FREIGHT AGREEMENT For the period of August 1, 2013 through July 31, 2018 UPS Freight, hereinafter referred to as the “Employer” and/or

NATIONAL MASTER UPS FREIGHT AGREEMENT

For the period ofAugust 1, 2013 through July 31, 2018

UPS Freight, hereinafter referred to as the “Employer” and/or“Company”, and the TEAMSTERS NATIONAL UPS FREIGHTNEGOTIATING COMMITTEE, hereinafter referred to asTNUPSFNC, representing Local Unions affiliated with theInternational Brotherhood of Teamsters.

ARTICLE 1PARTIES TO THE AGREEMENT

Section 1. Employees CoveredThis Agreement covers, where already recognized, those employeeswho are employed as drivers, either over-the-road or city, as well asthose employees engaged in dock and clerical work. A list of loca-tions at which the TNUPSFNC has been recognized is appended tothis Agreement as Addendum A.

Section 2. Operations CoveredThe execution of this Agreement on the part of the Employer shallcover all employees of the Employer in the bargaining unit at anyexisting terminals at which the TNUPSFNC has been certified asthe collective bargaining representative. The Locals designated bythe TNUPSFNC to administer the Agreement shall also be deemedparties to this Agreement.

Section 3. Transfer of Company Title or InterestIn the event the Company is sold or any part of its operations cov-ered by this Agreement is transferred, the Company shall givenotice to the Local Union to the extent required by applicable law.

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Page 12: NATIONAL MASTER UPS FREIGHT AGREEMENTUPS FREIGHT AGREEMENT For the period of August 1, 2013 through July 31, 2018 UPS Freight, hereinafter referred to as the “Employer” and/or

The Company shall give notice of the existence of this Agreementto any entity involved in the sale or other transaction by which theoperation covered by this, or any part thereof, may be transferred.Such notice shall be in writing, with a copy to the Local Union, atthe time of the purchase and sale negotiation are made known to thepublic or the Company executes a contract or transaction as hereindescribed, whichever first occurs. The Local Union shall also beadvised of the exact nature of the transaction, not including finan-cial details.

ARTICLE 2SCOPE OF AGREEMENT

Section 1. AgreementThe execution of this Agreement on the part of the Company shallapply to the job classifications defined and set forth in thisAgreement.

Section 2. Non-Covered UnitsThis Agreement shall not be applicable to those operations of theCompany where the employees are covered by a collective bar-gaining agreement with a union not signatory to this Agreement, orto those employees who have not designated a signatory union astheir collective bargaining agent.

Section 3. AccretionsNotwithstanding the foregoing paragraphs, the provisions of thisAgreement shall be applied without evidence of Union repre-sentation of the employees involved, to all subsequent additions to, and extensions of, current operations covered by this Agreement,which adjoin and are controlled and utilized as a part of such current operation, and newly established terminals and consolida-tions of terminals which are controlled and utilized as a part of such current operation. In the event the parties fail to agree on whether an accretion under this Section is appropriate, the exclusive method of resolving the dispute shall be that either partymay refer the issue to the National Labor Relations Board for deter-mination.

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Page 13: NATIONAL MASTER UPS FREIGHT AGREEMENTUPS FREIGHT AGREEMENT For the period of August 1, 2013 through July 31, 2018 UPS Freight, hereinafter referred to as the “Employer” and/or

ARTICLE 3RECOGNITION, UNION SHOP, ANd CHECkOFF

Section 1. Recognition(a) The Employer recognizes and acknowledges that the TeamstersNational United Parcel Service Freight Negotiating Committee isthe exclusive representative of all employees of the Employer incovered classifications. The employees covered by this Agreementshall constitute one (1) bargaining unit. The Local Unions designat-ed by the TNUPSFNC to represent the covered employees shall beparties to this Agreement.

(b) When the Employer needs additional employees, it shall givethe Union equal opportunity with all other sources to provide suit-able applicants, but the Employer shall not be required to hire thosereferred by the Union.

Business agents and/or a steward shall be permitted to attend newemployee orientations. The Employer agrees to provide the LocalUnion at least one week’s notice of the date, time, and location ofsuch orientation. The sole purpose of the business agent’s or stew-ard’s attendance shall be to encourage new employees to join theUnion.

Section 2. Union Shop and dues(a) All present employees who are members of the Local Union onthe effective date of this Subsection or on the date of execution ofthis Agreement, whichever is the later, shall remain members of theLocal Union in good standing as a condition of employment. Inorder to assist the Local Unions in maintaining current and accuratemembership records, the Employer will furnish the appropriateLocal Union a list of new employees. The Employer agrees to noti-fy the Local Union when a new employee attains seniority. Thisnotification will be made in conjunction with the new employeelisting. The list will include the name, address, social security num-ber, date of hire, service center to which assigned, shift, and classi-fication or position hired into. The list will be provided on a month-ly basis. All present employees who are not members of the Local

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Page 14: NATIONAL MASTER UPS FREIGHT AGREEMENTUPS FREIGHT AGREEMENT For the period of August 1, 2013 through July 31, 2018 UPS Freight, hereinafter referred to as the “Employer” and/or

Union and all employees who are hired hereafter, shall become andremain members in good standing of the Local Union as a conditionof employment on and after the thirty-first (31st) day following thebeginning of their employment, or on and after the thirty-first (31st)day following the effective date of this Subsection, or the date ofthis Agreement, whichever is the later. An employee who has failedto acquire, or thereafter maintain, membership in the Union, asherein provided, shall be terminated seventy-two (72) hours afterthe Employer has received written notice from an authorized repre-sentative of the Local Union, certifying that membership has been,and is continuing to be offered to such employees on the same basisas all other members, and further that the employee has had noticeand opportunity to make all dues or initiation fee payments. Thisprovision shall be made and become effective as of such time as itmay be made and become effective under the provision of theNational Labor Relations Act, but not retroactively.

(b) No provision of Section 2(a) of this Article shall apply to theextent that it may be prohibited by state law. In the eventSubsection (a) above may not be validly applied, the Employeragrees to recommend to all new employees that they become mem-bers of the Union and maintain such membership during the life ofthis Agreement.

Section 3. dues CheckoffThe Employer agrees to deduct from the pay of all employees coveredby this Agreement the initiation fees, dues and/or uniform assessmentsof the Local Union having jurisdiction over such employees. TheLocal Union will electronically provide the Employer a weeklyamount to be deducted from each employee. The Local Union willindividually specify the weekly amount to be deducted for initiationfees, union dues and/or assessments. For initiation fees and assess-ments, the Local Union will notify the Employer the number of weeksthese deductions are to be taken from the employee. Notification ofdeductions to be made by the Employer for the benefit of the LocalUnion must be received at least one (1) month prior to the date thededuction is to be made. The obligation of the Local Union to providethis information shall be satisfied by the transmission of a computerfile in mutually agreeable format.

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Page 15: NATIONAL MASTER UPS FREIGHT AGREEMENTUPS FREIGHT AGREEMENT For the period of August 1, 2013 through July 31, 2018 UPS Freight, hereinafter referred to as the “Employer” and/or

The Employer shall make no deductions that are not listed on theLocal Union’s monthly or weekly checkoff statement in those loca-tions which send a checkoff statement to the Employer. In the eventthe Employer improperly deducts too much dues money, theamount improperly withheld shall be remitted to the involvedemployee(s) on the second (2nd) scheduled workday followingnotification to the Employer. The Local Union(s) shall return anyoverpayment(s) to the Employer within one (1) week followingwritten notification from the Employer.

The Employer will provide a remittance to the Local Union withinfifteen (15) days following the check date the deduction was taken.With each remittance, the Employer shall submit a report listing allemployees alphabetically with their social security number and jobclassification. For those employees who had no deduction for theweek, the Employer will provide a reason. In the event the LocalUnion does not want to receive a weekly remittance, the Employerwill provide a monthly remittance by the fifteenth (15th) day of thefollowing month. However, if this option is chosen, the Employerwill still make weekly deductions as described above.

Where law requires written authorization by the employee, the sameis to be furnished in the form required. No deduction shall be madewhich is prohibited by applicable law.

The Employer agrees to deduct from the paycheck of all employeescovered by this Agreement voluntary contributions to DRIVE.DRIVE shall notify the Employer of the amounts designated byeach contributing employee that are to be deducted from his/herpaycheck on a weekly basis for all weeks worked. The phrase“weeks worked” excludes any week other than a week in which theemployee earned a wage. The Employer shall transmit to DRIVENational Headquarters on a monthly basis, in one (1) check, thetotal amount deducted along with the name of each employee onwhose behalf a deduction is made, the employee’s Social Securitynumber and the amount deducted from that employee’s paycheck.The International Brotherhood of Teamsters shall reimburse theEmployer annually for the Employer’s actual cost for the expensesincurred in administering the weekly payroll deduction plan.

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The Employer agrees to deduct certain specific amounts each weekfrom the wages of those employees who shall have given theEmployer written notice to make such deductions. The Employerwill remit amounts deducted to the applicable credit union onceeach week. The amount so deducted shall be remitted to the appli-cable credit union once each month or weekly. The Employer shallnot make deductions and shall not be responsible for remittance tothe credit union for any deductions for those weeks during whichthe employee’s earnings shall be less than the amount authorized fordeductions.

ARTICLE 4STEwARdS

The Company recognizes the right of the Local Union to designatejob stewards and alternates from the Company’s seniority list. Theauthority of job stewards and alternates so designated by the LocalUnion shall be limited to, and shall not exceed, the following dutiesand activities:

(a) The investigation and presentation of grievances with his/herCompany or the designated Company representative in accordancewith the provisions of the collective bargaining agreement;

(b) The collection of dues when authorized by appropriate LocalUnion action;

(c) The transmission of such messages and information, whichshall originate with and are authorized by the Local Union or itsofficers, provided such messages and information:

1. have been reduced to writing; or

2. if not reduced to writing, are of routine nature and do not involvework stoppages, slowdowns, refusals to handle goods, or any otherinterference with the Company’s business.

When requested by the employee, there shall be a steward presentwhenever the Company meets with the employee to conduct inves-tigatory interviews which may result in discipline or discharge or to

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discuss a grievance. If a steward is unavailable, the employee maydesignate a bargaining unit member who is immediately available atthe service center at the time of the meeting to be present. Meetingsor interviews shall not begin until the steward or designated bar-gaining unit member, if requested, is present. An employee whodoes not want a Union steward or designated available bargainingunit member present at any meeting or interview where the employ-ee has a right to Union representation, must waive Union represen-tation in writing. If the Union requests a copy of the waiver, theCompany shall promptly furnish it.

Stewards and alternates have no authority to take strike action orany other action interrupting the Company’s business, except asauthorized by official action of the Local Union. The Company rec-ognizes these limitations upon the authorized Job Stewards andtheir alternates, and shall not hold the Union liable for any unau-thorized acts. The Company in so recognizing such limitationsshall have the authority to impose proper, nondiscriminatory disci-pline, including discharge. However, in the event the Job Stewardor the designated alternate has led, or instigated or encouragedunauthorized strike action, slowdown or work stoppages in viola-tion of this Agreement, he/she may be singled out for more seriousdiscipline, up to and including discharge. Stewards and/or alternatestewards shall not be subject to discipline for performing any of theduties within the scope of their authority and defined in this Section,in the manner permitted by this Section.

The Steward or the designated alternate shall be permitted reason-able time to investigate, present and process grievances on theCompany’s property without interruption of the Company’s opera-tion. Upon notification to his or her supervisor, a steward shall beafforded the right to leave his/her work area for a reasonable periodof time to investigate, present and process grievances and to repre-sent a fellow employee concerning grievances or discipline so longas such activity does not interrupt the Employer’s operations. TheCompany will make a reasonable effort to ensure that its operationsare not interrupted by the steward’s engaging in such activities. TheCompany shall not use interruption of its operation as a subterfugefor denying such right to the steward. Time spent in handling griev-

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ances during the job steward’s or his/her designated alternate’s reg-ular working hours shall be considered working hours in computingdaily and/or weekly overtime if within the regular schedule of the“job steward.”

The Employer shall only be obligated to respond to informationrequests that are approved by the business agent of the Local Unionassigned to represent employees covered by this Agreement.

Union stewards shall be allowed to wear a Union Steward pin whileon the Employer’s property.

ARTICLE 5

Section 1. Seniority(a) Upon completion of the probationary period, the employee’sseniority for all purposes shall be the first (1st) day worked as a pro-bationary employee. Seniority shall be broken only by discharge,voluntary quit, normal retirement, or more than a two (2) year lay-off, or leave, except for employees on workers compensation leavewho shall not suffer a break in seniority unless on leave for morethan three (3) years.

(b) A list of employees arranged in the order of their seniority shallbe posted on the Union bulletin board no less often than once everysix (6) months. A copy of the seniority posting shall be sent to theLocal Union.

(c) Any controversy over the seniority standing of any employeeon the seniority list shall be subject to the grievance procedure. Anemployee shall have thirty (30) days to protest his placement on theseniority list once it is first posted. If there is no written protestwithin this thirty (30) day period, the employee shall not have aright to challenge his placement on the list thereafter.

(d) For full-time employees there shall be two seniority lists, “localcartage” and “over-the-road.” There shall also be a separate “casu-al local cartage” seniority list. Employees in the following classifi-cations shall be included on the local cartage seniority list: all truck

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drivers, helpers, dock workers, jockeys, and such other employeesas may be presently or hereafter represented by the Union, engagedin local pickup, delivery, and assembling of freight. The “over-the-road” seniority list shall include all over-the-road drivers whose pri-mary job is to transport freight between the Employer’s facilities.Nothing within this paragraph shall preclude the Company fromrequesting a road driver to make extra stops to pick up or deliverfreight in connection with his regular run or performing other localcartage work as the Company may assign. It is not the intent of theCompany that this provision be utilized to diminish cartage employ-ees’ work.

(e) The Company shall offer extra city or dock work to roademployees who are on layoff and who are qualified and immediate-ly available for city or dock work prior to using casual employees,except where there is a mutually agreed procedure to the contrary.No road employee shall gain “local cartage” seniority under thisprovision, but he/she shall accrue Company seniority.

(f) The following shall apply to casual employees:

1. The date an employee is hired as a casual will be the casual sen-iority date.

2. A casual employee laid off due to lack of work for less than oneyear will retain his/her casual seniority. Company and job classifi-cation seniority shall be lost due to discharge, voluntary quit orretirement.

3. The date a casual employee obtains full-time employment shallbe the employee’s regular seniority date.

4. A casual employee whose layoff exceeds one (1) year shall beconsidered to have been terminated and shall lose seniority, but mayreapply for employment.

5. A full-time employee’s seniority shall prevail over a casualemployee’s seniority in case of layoff.

6. If a full-time position is available for bid, and is not bid upon by

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a qualified regular full-time employee, the casual employee with themost seniority who bids on the position will be awarded the posi-tion if he/she meets the minimum qualifications of the position.

7. Casual employees will be laid off and recalled to their job classi-fication in accordance with Section 2 below.

8. When a casual or combination of casuals works the same shift foreight (8) continuous hours forty-five (45) days in ninety (90) con-secutive calendar days, other than as a temporary replacement foran employee on vacation or leave of absence, the Company shallcreate a full-time position that it may classify, at its discretion, as afulltime dock with CDL or fulltime dock only; pay will be in accor-dance with Article 26.

(g) In developing the initial Local Cartage seniority list referencedabove, the Company shall use the employee’s Company senioritydate unless a particular employee transferred into his current serv-ice center from another service center. In such event, the employ-ee’s transfer date to the current service center shall be used to devel-op the seniority list.

Section 2. Layoffs(a) When it becomes necessary to reduce the working force, the last employee hired on the affected classification seniority list shallbe laid off first, unless CDL qualifications are necessary. Theaffected regular employee may bump the most junior employee inanother job classification provided the bumping employee is quali-fied to do the job. The bumping employee goes to the bottom of thenew job classification seniority list. If the employee exercises theright to bump and receives a recall notice, the employee must returnto the position from which he/she was laid off. Company benefitswill be provided in accordance with the terms of the applicableSPD.

An employee on layoff will be offered work in any or all classi-fications (road, city, or dock) at his domicile ahead of any casual or probationary employees, provided he/she is available and qualified.

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(b) An employee shall be entitled to a notice of layoff from the Company if they are subject to the daily elimination of their job under paragraphs (c) or (d) below for a period of at least two (2) consecutive weeks. The notice shall be provided to the em-ployee and the Local Union, upon request. If such notice is pro-vided, the employee shall be considered laid off and have the right to exercise the privileges of the first paragraph of this Section.

(c) If a road driver’s run is cut for the day, the road driver will havethe option of (1) holding until his/her next bid, (2) dovetailing intothe extra board or (3) working ahead of a casual employee. Option(2) and (3) will only be available to the driver if he/she will be ableto meet their next bid start time.

(d) If a P&D driver’s run is cut for the day, the P&D driver willhave the option of (1) taking the day off pursuant to (e) below, or(2) displacing the junior P&D driver who starts at the same time orafter them, if any. The displaced P&D driver may work ahead of acasual employee for available hours, provided the driver will beable to meet their next bid start time.

(e) When more than one employee within a job classificationrequests a day off, the Company will offer any available time off inseniority order.

Section 3. RecallEmployees on layoff (including employees who exercised theirright to bump) shall be recalled in the reverse order of their layoff,provided the employee is qualified to perform the work, if work isavailable. Notice of recall shall be mailed to the employee’s lastknown address by certified mail, return receipt requested, and shallset forth the time and date the laid off employee is to report back towork. The employee shall have seven (7) calendar days from thedate the return receipt is signed to contact the Employer and seven(7) calendar days to return to his/her previous job. In the event anemployee fails to make himself/herself available for work at the endof the seven (7) calendar days, he/she shall lose all seniority rightsunder this Agreement.

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Section 4. Posting(a) Starting times, by classification will be posted for bid on theUnion bulletin board on a semi-annual basis in June and Decemberof each year. The bids will contain a description of the run or job. Bids shall remain posted for seven (7) calendar days, from Wednesday noon to Wednesday noon. The most senioremployee bidding on the job shall be awarded the bid. TheCompany retains all rights to change the contents of any job after the bid process as necessary to service its customers. If thestart time of a job changes more than two (2) hours or more than one hundred (100) miles (total within a week) for an “over-the-road” driver, the job shall be subject to re-bid under para-graph (b) below. In addition, if a bid job is cancelled more than ten (10) times in a calendar month, the job shall be subject to re-bid under paragraph (b) as well, provided the employee holding the job does not decide to remain in the job. Further, nothing written in this paragraph shall preclude the Company from using local cartage drivers in another area if operationally nec-essary.

(b) Available new or vacated bargaining unit positions will be post-ed for seven (7) calendar days from Wednesday noon to Wednesdaynoon on the Union bulletin board. Such postings will include thestart time and a description of the run for “over-the-road” jobs. Themost senior employee bidding on the job who is below the employ-ee currently holding the job on the seniority list shall be awarded thebid.

There shall be a limit of four (4) moves as a result of the re-bid. TheCompany shall thereafter have the right to fill any remaining vacan-cy via the assignment of the junior available qualified employee. Inthe absence of a local agreement to the contrary, if ten percent(10%) or more of the road driver bid jobs on the seniority list areposted for re-bid within the thirty (30) calendar days after the semi-annual bid process set forth in this section, an additional bid of allstarting times will occur in the classification.

Copies of all completed bids shall be sent to the Local Union with-in ten (10) working days of completion.

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(c) Employees who did not possess a CDL on April 7, 2008, includ-ing yard jockeys, shall continue to be red circled. All new full-timeemployees will be required to possess a valid CDL. Casual employ-ees must possess a valid CDL before they will be eligible to beawarded a full-time job except as otherwise provided in this Article.

The Company shall make equipment and management personnelreasonably available for employees to use to gain CDL qualifica-tions on their own time.

Section 5. Probationary Employees(a) A probationary employee shall work under the provisions ofthis Agreement, but shall be employed on a trial basis until he com-pletes forty-five (45) working days in a ninety (90) working dayperiod. Time spent in orientation shall not count toward the forty-five (45) working days.

(b) The Employer may not terminate a probationary employee forthe purpose of evading this Agreement or discriminating againstUnion members.

Section 6. Purchase of EquipmentThe Employer shall not require as a condition of continued employ-ment that an employee purchase truck, tractor, and/or tractor andtrailer or other vehicular equipment, or that any employee purchaseor assume any proprietary interest or other obligation of the busi-ness.

Section 7. Unassigned workWhen all things are equal, the Employer recognizes that the princi-ples of seniority shall be given prime consideration in the everydayoperation of the business.

Absent an area agreement to the contrary, the following shall apply:

(a) Unassigned P&D drivers with the same start time will beoffered the choice of P&D work in seniority order at the beginningof their shift. Unassigned work that is available during and at theend of the shift will be offered in seniority order to P&D drivers

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who are currently available and qualified. Drivers will decidepromptly upon being offered a choice of work.

(b) When it becomes necessary to reduce the number of dockworkers during a shift, unassigned dock work will be offered todock workers who are waiting for assignment in seniority order,provided all contractual work guarantees are met and overtime sta-tus is equal.

ARTICLE 6SUSPENSION, dISCIPLINE ANd dISCHARGE

Section 1. Just CauseEmployees shall not be disciplined, suspended or discharged exceptfor just cause. Except for offenses of extreme seriousness, employ-ees shall be subject to progressive discipline, which shall require theCompany to give at least one (1) advance warning notice of thecomplaint(s) against the employee to the employee in writing witha copy of the same to the Local Union.

Section 2. Notification in writingWhen an employee is disciplined, suspended or discharged, theemployee and the Union shall be notified in writing. Any employ-ee discharged away from his/her home Service Center shall be pro-vided expeditious transportation to his/her home Service Center atthe Company’s expense.

Section 3. Expiration of Prior disciplinary Actionfor Future Use in Progressive disciplineWarning notice(s) or suspensions as provided herein shall notremain in effect to support further progressive disciplinary actionfor a period of more than nine (9) months. All warning notices, dis-charges, suspensions or other disciplinary action shall be confirmedin writing to the employee and Union.

Section 4. Prompt ActionThe Employer must issue all discipline within ten (10) calendar

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days of knowledge of the underlying events, with the exception ofissuing a letter of investigation regarding accidents. In the event ofa vehicle accident, the Employer shall have twenty (20) days tocomplete its investigation, if warranted, and ten (10) days to takedisciplinary action. During the period of the investigation theemployee will be offered any available dockwork in his service cen-ter. The pay rate shall be the applicable full-time dockworker rate.The twenty (20) days will be extended by mutual agreement, as nec-essary, if relevant information is not available to the Employer.Agreement will not be unreasonably withheld.

Section 5. SuspensionsSuspensions are to be served upon: (1) the employee’s acceptanceof the suspension; or (2) notification of a decision by the RegionalPanel; or (3) failure of the employee to file a timely grievance.

ARTICLE 7LOCAL, REGIONAL ANd NATIONAL

GRIEvANCE PROCEdURESSection 1.A grievance is hereby defined to be any controversy, complaint,misunderstanding or dispute arising as to interpretation, applicationor observance of any of the provisions of this Agreement.

Grievance procedures may be invoked only by the authorizedUnion or Employer representative.

Section 2.Except in cases where an employee can be suspended or dischargedwithout a warning letter, an employee subject to suspension or dis-charge shall be allowed to remain on the job, without loss of pay,unless and until the suspension or discharge is sustained under thegrievance procedure. The Union agrees that it will not unreason-ably delay the processing of such cases. An employee remaining onthe job under this provision may be removed from service if he/shecommits another disciplinary offense for which he/she is subject tosuspension or discharge without a warning letter under this

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Agreement. Grievances related to a discharge or suspension noticemust be filed with the Company within ten (10) calendar days. Ifthe grievance cannot be resolved locally within five (5) workingdays, Section 3 (c) below applies.

Section 3. Resolution of GrievancesIn the event of a grievance related to any dispute as to the interpre-tation, application or observance of the provisions of thisAgreement other than discipline, it shall be handled in the follow-ing manner:

(a) The employee shall report it to his shop steward in writing with-in five (5) working days. The steward shall attempt to adjust thematter with the supervisor within two (2) working days.

(b) Failing to agree, the shop steward shall promptly report thematter to the Local Union which shall submit it in writing andattempt to adjust the same with the Company within five (5) work-ing days.

(c) If the Local Union and the Company fail to reach a decision or agree upon a settlement in the matter, it may be submitted in writing within ten (10) working days to the appropriate UPS Freight Joint Grievance Panel (UPSFJGP), as set forth in Section 5below.

(d) A grievance to be heard by the appropriate UPSFJGP must bein writing and submitted to the Panel Secretary thirteen (13) work-ing days before the meeting of the Panel, with the exception of dis-charge grievances which may be submitted no less than five (5)working days before the meeting.

(e) In the event a majority of a Panel cannot agree upon a decision,other than a case covered by Section 5(g) below, the matter shall beconsidered deadlocked. In such event, the Union shall have theright to request it to be heard by the National Grievance Panel(NGP) within ten (10) calendar days after receipt of the writtendecision. If an open grievance is not submitted to the NGP withinthe ten (10) days, it shall be considered resolved.

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Section 4. MiscellaneousPayment for grievances settled at the local level of the grievanceprocedure must be made within two (2) weeks following the date ofthe settlement. Payment for grievances resolved by a RegionalPanel or the National Grievance Panel shall be made within two (2)weeks following the Company’s receipt of the Panel’s resolutionstatement. A copy of the payroll adjustment will be mailed to theLocal Union involved. Payment of grievance amount will be listedon the employee’s payroll advisory. Payment for grievance settle-ment shall be taxed at the employee’s regular withholding ratewhere legally permissible.

The parties may extend any deadline imposed by this Article inwriting by mutual agreement.

Section 5. Regional Grievance Panels(a) There shall be four (4) UPS Freight Regional Joint GrievancePanels. The Panels shall be established based upon the correspon-ding geographical regions of the International Brotherhood ofTeamsters: i.e. Eastern, Western, Central, and Southern.

(b) In order that each Panel may operate quickly and efficiently, theparties agree that a person who may or may not be a member of aPanel shall be mutually selected and designated to serve asSecretary. Each Panel shall have its own Secretary. The Secretaryshall have no voice in making decisions and shall perform only theduties assigned to him/her by the Panel. The Secretary shall dock-et cases, prepare the agenda and mail a copy prior to the scheduledmeeting of the Panel to each member of the Panel, the Employerand Local Unions whose case appears on the agenda. The Secretaryshall attend the meeting to prepare and keep the minutes and mailcopies of the minutes to the members of the Panel and shall alsomail copies of the decision of the Panel to all UPS Freight repre-sentatives and Local Unions who are parties to this Agreement.

(c) A grievance to be heard by a Panel must be put in writing andsubmitted to the appropriate Secretary thirteen (13) days before themeeting of the Panel, with the exception of discharge grievanceswhich may be submitted no less than five (5) working days before

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the meeting. The Parties further agree that no grievance or griev-ances shall be discussed except those which have been received bythe Secretary of the Panel before the deadline set forth above. It isagreed that in order for a Panel to hear a case there shall be an equalnumber of Employer Committee members and Union Committeemembers sitting, not to exceed three (3) Union Committee membersand three (3) Employer Committee members and not less than two(2) Union Committee members and two (2) Employer Committeemembers. The members of the Panel are to be selected from theoverall geographical area covered by the Panel. The decision of themajority of the Panel hearing the case shall be binding on all par-ties.

(d) It is understood and agreed that the Employer representativesand the Local Union representatives who are representing the UPSFreight operation and/or Local Union involved in a proceedingbefore a Panel, will be ineligible to act as a member of that Panelduring the proceeding.

(e) If a Local Union dockets a case at a Regional Panel, theCompany and the Union shall both be required to pay a fifty($50.00) dollar docketing or hearing fee. The expenses for operat-ing a Regional Panel shall be borne equally by all the covered LocalUnions on a pro rata basis and Company operations which are cov-ered by this Agreement. The parties reserve the right to modify theabove fees or impose an assessment, by mutual consent.

(f) All unresolved grievances must be referred to the appropriateRegional Panel. Each Regional Panel will meet every three (3)months for a three (3) day period for the purpose of hearing griev-ances docketed on the agenda. During this three (3) day period, thePanel will hear cases in the following order: discharges, suspen-sions, and regular cases; provided however, that regular cases shallbe heard at least on the third (3rd) day. The Company may not post-pone a discharge case in which the Grievant is off the job, provideda local hearing has been conducted.

Upon the request of either chairman and by mutual agreement ofboth chairmen, the Regional Panel will hear discharge and suspen-

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sion cases on Tuesday, Wednesday and Thursday, if necessary, inorder to clear the docket. In these month(s), there will be a second(2nd) Regional Panel established on the same days to hear regularcases on Tuesday, Wednesday and Thursday. Such request will belimited to two (2) times a year unless otherwise mutually agreed toby both the Company and the Union chairmen.

After one (1) year, the Co-Chairs of the Regional Panels shall eval-uate whether meeting every three (3) months is effectively andexpeditiously resolving pending grievances. If not, the schedulewill be reverted to every two (2) months by mutual agreement.

(g) On discharge and suspension cases only, an impartial arbitratorwill sit as a fifth (5th) or seventh (7th) Panel member of the RegionalPanel and shall render a bench decision on all deadlocked cases. Theparties shall mutually agree to a panel of arbitrators. If the parties areunable to agree, each party shall submit a list of seven (7) arbitratorsand shall alternately strike until at least three (3) are selected.Individual arbitrators are subject to review and dismissal by eitherparty upon thirty (30) days notice and will be replaced. Any arbitra-tor’s decision that involves the interpretation of this Agreement, otherthan Article 6, may be reviewed by the NGP subject to the criteria andprocedures set forth in Section 6(b) below.

Section 6. National Grievance Panel(a) Cases deadlocked at a Regional Panel may be submitted to theNGP for decisions. The NGP shall be composed of an equal num-ber of Employer and Union representatives. It shall meet at leastthree (3) times per year on mutually agreed upon dates and loca-tions. The NGP shall adopt rules of procedure which may includethe reference of disputed matters to subcommittees for investigationand report the final decision or approval, however, to be made bythe NGP. If the NGP resolves any dispute by a majority vote ofthose present and voting, such decision shall be final and bindingupon all parties.

(b) The Union and Employer may under this Section review andreverse, if necessary, decisions by any regional or local grievancecommittee which interprets Master language erroneously.

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The NGP may consider and review decisions raising an issue ofinterpretation of language which are submitted by the Union (eitherthe Chair of the TNUPSFNC or his designee) or the designatedEmployer representative. The NGP shall have the authority toreverse and set aside the majority decision of any regional panel,local decision or Regional Panel arbitrator’s award if, in its opinion,such decision is contrary to the language of this Agreement. Thedecision of the NGP shall be final and binding. The NGP shalldetermine whether a decision submitted to it raises an issue of inter-pretation of Master Agreement language.

In order for such cases to be reviewed, the decision must interpretlanguage of this Agreement and set a precedent for future griev-ances. In addition, a reasonable case must be made that the lowerPanel interpretation was contrary to the true meaning of theAgreement. If the NGP deadlocks on whether a decision meetsthese criteria, arbitration may be requested as set forth below, unlessthe review concerns a Regional Panel arbitrator’s opinion.

Prior to such cases being placed on the master docket, the movingparty (either the Chair of the TNUPSFNC or his designee) or thedesignated Employer representative shall confer with his counter-part and discuss the matter.

(c) Where the NGP fails to reach a majority decision as to any casesubmitted pursuant to this Article, either party shall have the rightto refer the case to binding arbitration. Either party wishing to sub-mit a grievance to arbitration must do so within ten (10) days ofreceipt by mail or hand delivery of the NGP deadlock decision. Thearbitrator is to be selected from an American ArbitrationAssociation national panel list and all aspects of the arbitration pro-cedure shall be governed by the Rules of the American ArbitrationAssociation.

(d) The arbitrator shall have the authority to apply the provisions of this Agreement and to render a decision on any grievance com-ing before him/her but shall not have the authority to amend or modify this Agreement to establish new terms or conditions ofemployment.

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(e) The parties reserve the right to modify the above schedules, feesand/or assessments for Regional and NGP meetings by mutual con-sent.

ARTICLE 8PROTECTION OF RIGHTS

Section 1. Picket Lines: Sympathetic ActionIt shall not be a violation of this Agreement, and it shall not be causefor discharge, disciplinary action (including but not limited to thetemporary or permanent replacement of any employee) in the eventan employee refuses to enter upon any property involved in a pri-mary labor dispute, or refuses to go through or work behind any pri-mary picket line, including the primary picket line of Unions partyto this Agreement, and including primary picket lines at theEmployer’s places of business, and the Employer shall not directany employee to cross a primary picket line.

Section 2. Struck GoodsIt shall not be a violation of this Agreement and it shall not be causefor discharge, disciplinary action or permanent replacement if anyemployee refuses to perform any service which his/her Employerundertakes to perform as an ally of an Employer or person whoseemployees are on strike and which service, but for such strikes,would be performed by the employees of the Employer or person onstrike.

ARTICLE 9LOSS OR dAMAGE

Section 1.Employees shall not be held responsible, or required to assume lia-bility, for loss or damage or stolen merchandise, unless theCompany demonstrates that the employee, without justification ormitigation, violated established rules, procedures or policies, theobservance of which would have prevented the loss, damage ortheft. In no event will an employee be held responsible for, or

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required to assume any liability for any loss, damage or stolen mer-chandise when performing assigned work in a manner as specifi-cally instructed by a supervisor. This Article shall not be utilized inany manner to hold an employee liable for any loss or damage ofequipment under any conditions or for any damage to cargo as aresult of any vehicular accident.

Section 2.Prior to an employee being charged with the responsibility and lia-bility for any loss, damaged or stolen merchandise, a hearing shallbe held with the Local Union, the employee and the Company, dur-ing which the employee’s justification or mitigation, if any, forhis/her conduct shall be considered. Employees who are found tobe liable and required by the Company to make restitution for suchliability shall not also be subject to any further disciplinary action.Any dispute between the parties under this provision may bereferred to the grievance procedure.

ARTICLE 10BONd ANd INSURANCE

Section 1. BondsShould the Company require any employee to give bond, cash bondshall not be compulsory, and any premium involved shall be paid bythe Company. The primary obligation to procure the bonds shall beon the Company. If the Company cannot arrange for a bond withinninety (90) days, it must so notify the employee in writing. Failureto so notify shall relieve the employee of the bonding requirement.If proper notice is given, the employee shall be allowed thirty (30)days from the date of such notice to make his/her bonding require-ments, standard premiums only on said bond to be paid by theCompany. A standard premium shall be that premium paid by theCompany for bonds applicable to all other of its employees in sim-ilar classifications. Any excess premium is to be paid by theemployee. Cancellation of a bond after once issued shall not because for discharge unless the bond is cancelled for cause whichoccurs during working hours, or due to the employee having givena fraudulent statement in obtaining said bond.

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Section 2. InsuranceEvery driver of a commercial motor vehicle must maintain aCommercial Drivers License and be covered by insurance. If theCompany cannot cover a driver under an existing fleet policy, theCompany will promptly apply to the state assigned risk-pool to pro-vide any comparable coverage. During the pendency of the appli-cation and until insurance is obtained, the driver will not be termi-nated, but will be taken out of driving service.

ARTICLE 11UNIFORMS

The Company agrees that if any employee is required to wear anykind of uniform as a condition of continued employment, such uni-form, including uniform shorts, shall be furnished by the Company,free of charge, at the standard required by the Company. TheCompany will consider purchasing uniforms made in the UnitedStates by union vendors.

The Company shall replace all clothing, glasses, hearing aids and/ordentures not covered by Company insurance or workers’ compen-sation which are destroyed or damaged in a wreck or fire withCompany equipment while on Company business.

The Company has the right to establish and maintain reasonablestandards for wearing apparel and personal grooming.

The Company shall place an order for replacement uniform partswithin one (1) week of the date upon which an employee showsworn items to his or her manager. The worn items will beexchanged with replacement uniform parts when the Companyreceives the replacements from the vendor.

ARTICLE 12PASSENGERS

No driver shall allow anyone to ride on his/her truck except byauthorization of the Company, or except in cases of emergency aris-ing out of disabled commercial equipment or an Act of God. No

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more than two (2) people (including the driver) shall ride in the cabof a tractor unless required by government agencies or the necessi-ty of checking of equipment. This shall not prohibit drivers frompicking up other drivers, helpers or others in wrecked or broken-down motor equipment and transporting them to the first (1st) avail-able point of communication, repair, lodging or available medicalattention. Nor shall this prohibit the transportation of other driversfrom the Company at a delivery point or Service Center to a restau-rant for meals.

ARTICLE 13COMPENSATION CLAIMS

(a) The Company agrees to cooperate toward the prompt disposi-tion of employee on-the-job injury claims. Upon request by anemployee injured on-the-job, the Company will provide informa-tion outlining the procedure for submitting a workers’ compensa-tion claim.

(b) Road drivers sustaining an injury while being transported inCompany provided transportation for Company purposes at a lay-over service center shall be considered as having been injured onthe job.

(c) In the event that an employee sustains an occupational illness orinjury while on a run away from his/her home service center, theCompany shall provide transportation by bus, train, plane, or auto-mobile to his/her home service center if and when directed by a doc-tor.

(d) The Company agrees to provide any employee injured locallytransportation at the time of the injury, from the job to the medicalfacility and return to the job, or to his/her home if required.

(e) In the event of a fatality arising in the course of employment,while away from the home service center, the Company shall returnthe deceased to his/her home at the point of domicile.

(f) The Company may publish reasonable safety rules and proce-dures, provide the Local Union with a copy and require employees

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to acknowledge in writing that they have received such rules andprocedures. Failure to observe such reasonable rules and/or proce-dures shall subject the employee to disciplinary action.

(g) An employee who is sent home by the Company as a result ofan injury on the job, or is sent to a hospital, or who must obtainmedical attention that day, shall receive pay at the applicable hourlyrate for the balance of his/her regular shift on that day. An employ-ee who has returned to his/her regular duties after sustaining a com-pensation injury who is required by the worker’s compensation doc-tor to receive additional medical treatment during his/her regularlyscheduled working hours shall receive his/her regular hourly rate ofpay for such time.

(h) The Company may continue a modified work program on anon-discriminatory basis. This program is designed to provide tem-porary opportunity to those employees who are unable to performtheir normal work assignments due to an on-the-job injury.

ARTICLE 14MILITARy CLAUSE

Employees in service in the uniformed services of the United States,as defined by the provisions of the Uniform Services Employmentand Reemployment Rights Act (USERRA), Title 38, U.S. CodeChapter 43, shall be granted all rights and privileges provided byUSERRA and/or other applicable state and federal laws. This shallinclude continuation of health coverage as provided by USERRA,and pension contributions for the employee’s period of service, asprovided by USERRA. Employees shall be subject to all obliga-tions contained in USERRA which must be satisfied for theemployees to be covered by the statute.

The Employer, in its discretion, may make additional payments oraward additional benefits to employees on leave for service in theuniformed services in excess of the requirements outlined in theUSERRA.

Employees on USERRA-approved military leave shall continue toaccrue vacation to be used upon return as set forth below. To be eli-

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gible for accrual, employees must be (i) employed by UPS Freightfor at least one (1) year, (ii) be a member of the uniformed servicesat time of call up, and (iii) be called onto active duty (other than fortraining) for a period of service exceeding thirty (30) days pursuantto any provision of law because of a war or national emergencydeclared by the President of the United States or Congress. An eli-gible employee returning to work as per USERRA shall be entitledto annual vacation for the remainder of that contractual vacationperiod based on the number of weeks to which he/she is entitled foryears of service and the quarter in the current contractual vacationperiod in which the employee returns from eligible military leave,as follows:

No. Wks. Q1 Q2 Q3 Q45 5 3 2 14 4 3 2 13 3 2 1 12 2 1 1 1

In no event shall the employee have less than one (1) week of vaca-tion available upon his/her return.

For the next contractual vacation period, the employee shall becredited with the vacation he/she would have accrued while he/shewas on military leave.

The treatment of unused vacation and the scheduling of vacationshall be in accordance with Article 25.

Upon notification from an employee that he/she is taking USERRAqualified military leave, the Employer shall notify the Local Unionwithin five (5) business days.

ARTICLE 15EqUIPMENT ANd SAFETy

Section 1. Safe EquipmentThe Company shall not require employees to take out on the

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streets or highways any vehicle that is not in a safe operating condition, including, but not limited to, equipment which isacknowledged as overweight or not equipped with the safety appliances prescribed by law. It shall not be a violation of this Agreement or basis for discipline where employees refuse to operate such equipment unless such refusal is unjustified.

It shall also not be a violation of this Agreement or considered anunjustified refusal where employees refuse to operate a vehiclewhen such operation constitutes a violation of any federal rules,regulations, standards, or orders applicable to commercial motorvehicle safety or health, or because of the employee’s reasonableapprehension of serious injury to himself/herself or the public dueto the unsafe condition of such equipment. The Company shall beresponsible for any citation issued if it occurred through no fault ofthe driver.

Repairs to equipment will be certified on the Vehicle ConditionReport.

Section 2. dangerous ConditionsUnder no circumstances will an employee be required or assignedto engage in any activity involving dangerous conditions of work,or danger to person or property or in violation of any applicablestatute or court order, or in violation of government regulation relat-ing to safety of person or equipment. The term “dangerous condi-tions of work” does not relate to the type of cargo hauled or han-dled.

Section 3. Accident ReportsAny employee involved in any accident or cargo spill incident,involving any hazardous or potentially polluting product, shallimmediately report said accident or spill incident and any physicalinjury sustained. The employee, as soon as possible, or at the latestbefore the end of the shift during which the accident or incidentoccurs, shall make out an accident or incident report in writing onforms furnished by the Company and shall turn in all avail-able names and addresses of witnesses to the accident or incident.

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The employee shall receive a copy of the accident or incident reportthat he/she submits to the Company if requested. Failure to complywith this provision shall subject such employee to disciplinaryaction.

Section 4. Equipment ReportsEmployees shall immediately, or at the end of their shift, report alldefects of equipment. Such reports shall be made on a suitable formfurnished by the Company. The report shall be made available forinspection by the next driver operating the unit. The employeesmaking the report shall be provided a copy if requested at the timethe report is made.

The Company shall not ask or require any employee to take outequipment that has been reported on a Vehicle Condition Report asbeing in an unsafe operating condition by an employee who hasoperated the vehicle until the same has been repaired or is approvedfor use in accordance with the Vehicle Report Procedure.

When the occasion arises where an employee gives a written reporton forms in use by the Company of a vehicle being in an unsafeworking or operating condition and receives no consideration fromthe Company, he/she shall take the matter up with an officer of theLocal Union who will take the matter up with the Company.However, in no event shall an employee be required to take out onthe streets or highways a vehicle that is not in a safe operating con-dition or in violation of any federal rules, regulations, standards, ororders applicable to commercial motor vehicle safety as provided inSection 1 of this Article.

Section 5. qualifications on EquipmentIf the Company or government agency requests a regular employeeto qualify on equipment requiring a classified or special license, orin the event an employee is required to qualify (recognizing senior-ity) on such equipment in order to obtain a better job opportunitywith the Company, the Company shall allow such regular employ-ee the use of the equipment so required in order to take the exami-nation on the employee’s own time. Costs of such license requiredby government agency will be paid for by the employee.

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Section 6. Hazardous Materials ProgramThe parties agree to comply with the Company’s HazardousMaterials Program. The parties agree that the Company will beresponsible for the development and implementation of proceduressubject to federal, state and local laws regarding the handling ofhazardous materials.

Section 7. Union LiabilityNothing in this Agreement relating to health, safety or training rules or standards shall create any liability or responsibility on behalf of the Union for any job-related injury or accident to any employee or any other person. Further, the Company will not commence legal action against the Union as a result of the Union’s negotiation ofsafety standards contained in this Agreement or failure to properlyinvestigate or follow-up Company compliance with those safety stan-dards.

Section 8. Government Required Safety & HealthReportsThe Company shall provide upon written request by the LocalUnion, a copy of any occupational incident report that is required tobe filed with a federal government agency on safety and health sub-jects addressed by this Article only. Such reports shall be free ofcharge.

Section 9. Equipment Requirements(a) All vehicular equipment added after the effective date of thisAgreement will be equipped with air conditioning and power steer-ing. The Company will not purchase new diesel powered forkliftsunless the National Institute for Occupational Safety and Healthconcludes that diesel is or can be made as safe and healthy as alter-native fuels. Such forklifts will be maintained in proper operatingconditions.

(b) The Employer shall install heaters and defrosters on all trucksand tractors.

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(c) There shall be first-line tires on the steering axle of all road andlocal pick-up and delivery power units. In case of breakdown atemporary replacement other than a first-line tire may be used toreturn to the home terminal.

(d) All new road equipment regularly assigned to the fleet shall beequipped with an air-ride seat on the driver’s side. Such equipmentshall be maintained in reasonable operating condition. All new air-ride seats shall oscillate and have an adjustable lumbar support,height, backrest and seat tilt.

(e) When the Employer weighs a trailer, the over-the-road drivershall be furnished the resulting weight information along withhis/her driver’s orders.

(f) All road and city equipment shall have a speedometer operatingwith reasonable accuracy.

(g) The Employer and the Union recognize the need for safe andefficient twin-trailer operations. Accordingly, the parties agree tothe following:

1. Dollies shall be counter-balanced or equipped with a crank-down wheel to support the weight of the dolly tongue.

2. Whenever possible, the Employer will hook up the heaviest trail-er in front in twin-trailer operations. In those instances where it isnot possible because of an intermediate drop of less than one hun-dred fifty (150) miles or scaling of the drive axle, the driver afterdriving the unit at any point on the trip, determines, at his/her solediscretion, the unit does not handle properly, may have theEmployer switch the unit or authorize the driver to switch the unitand be paid for such time.

(h) All newly manufactured road tractors regularly assigned to thefleet after the effective date of this Agreement shall be equippedwith heated mirrors. However, it shall not be a violation of this pro-vision for the tractor to be dispatched to the next Employer point ofrepair if the heated and/or power mirror is inoperative.

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(i) All new diesel tractors and new yard equipment shall beequipped with vertical exhaust stacks.

(j) All new road and city tractors shall be equipped with large spotmirrors (6” minimum) on both sides of the tractor upon and after theeffective date of this Agreement.

ARTICLE 16ExAMINATION ANd IdENTIFICATION FEES

Section 1. Required Examination(a) Physical, mental or other examinations required by a govern-ment body or the Employer shall be promptly complied with by allemployees; provided, however, the Employer shall not pay for anytime spent in the case of applicants for jobs.

The Employer shall determine the doctor that will perform therequired examination and shall be responsible to these employeesonly for time spent at the place of examination or examinationswhere the time spent by the employee exceeds two (2) hours, and inthat case only for those hours in excess of said two (2) hours.Examinations are to be taken at the employee’s home area and arenot to exceed one (1) in any one (1) year, unless the employee hassuffered serious injury or illness within the year. Employees willnot be required to take examinations during their working hours,unless paid by the Employer for all time spent. Employees shall begiven reasonable notice of dates of examinations. The Employershall pay for all such examinations for all regular and probationaryemployees.

DOT medical cards must be obtained from the doctor designated bythe Company. For those drivers subject to DOT regulations whopossess a valid medical certificate from a designated DOT provider,the Employer shall pay for any additional physical, mental, or otherexaminations required by the Employer to confirm the validity ofthe medical certificate.

(b) It is understood by the Employer and the Union that once an employee notifies the Employer that he/she has been released

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to return to work by the employee’s doctor, the Company doctormust examine the employee within three (3) working days from the time the employee brings the return-to-work slip to theEmployer.

The Employer reserves the right to select its own medical examin-er or doctor, and the Union may, if it believes an injustice has beendone an employee, have said employee re-examined at the Union’sexpense.

In the event of disagreement between the doctor selected by theEmployer and the doctor selected by the Union, the Employer and Union doctors shall together select a third (3rd) doctor within seven (7) days, whose opinion shall be final and binding on the Company, the Union, and the employee. Neither theCompany nor the Union or employee will attempt to circumvent the decision. The expense of the third (3rd) doctor shall be equally divided between the Employer and the Union. Dis-putes concerning back pay shall be subject to the grievance procedure.

If the third (3rd) doctor agrees that the employee should be returnedto work, the employee shall be reimbursed at his/her daily guaran-tee, less any other monies received back to the date of the examina-tion by the Company doctor. It shall exclude any time the employ-ee was not available for examination or work.

Section 2. Identification FeesShould the Company find it necessary to require employees to carryor record full personal identification, such requirement shall becomplied with by the employees. Any such personal identificationshall not require employees to disclose their social security num-bers. The cost of such personal identification shall be borne by theCompany.

Section 3. Company will Furnish EquipmentIt is mutually understood that, under normal circumstances, theCompany will furnish equipment for their employees to take anyCDL test required by law.

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Section 4. Identification of Company RepresentativesCompany representatives, if not known to the employees, shallidentify themselves to employees prior to taking disciplinary action.

ARTICLE 17PAy PERIOd

Employees shall be paid in full each week on pay periods occurringon a day established by the Company, in the week following theweek worked.

Not more than seven (7) days’ pay shall be held on an employee.Each employee shall be provided with an itemized statement ofgross earnings and an itemized statement of all deductions made forany purpose. Verified payroll mistakes of twenty dollars ($20.00)or more will be paid on the next business day if requested by theemployee. Over-the-road employees shall receive their regular pay-checks prior to their last dispatch or tour of duty, prior to payday, ifavailable; with the understanding they shall not cash same until thedate on the paycheck.

New employees, defined as those not in the bargaining unit on thepayroll on the date of ratification, shall designate Electronic FundTransfer (EFT), unless prohibited by applicable State law.

When an employee notifies the Company in writing of any ongoingoverpayment, the employee’s increasing liability will cease five (5)working days after the date of the written notification. The notificationshall be provided to the employee’s immediate supervisor or manager.

All employees shall be reimbursed expenses within thirty (30) daysof submitting the request.

ARTICLE 18wORkdAy ANd wORkwEEk

Section 1. Casual EmployeesThe schedule for casual employees shall be posted by Friday of the

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preceding workweek. A casual employee shall be guaranteed four(4) hours of pay on any day he/she is scheduled and reports to work.The Company may alter the casual employee’s start time or cancelthe scheduled work day provided the employee is notified prior toreporting to work.

Section 2. Full-time EmployeesThe schedule for full-time employees shall be posted by Friday of the preceding workweek. The start time can be altered as a part of this posting by up to two (2) hours of the job’s bid start time.The Company may alter the start time on a daily basis for more than two (2) hours provided the employee is notified prior to reporting to work. If an employee’s start time is altered by morethan two (2) hours more than fifty percent (50%) of the time in any sixty (60) day period, the employee may request it to be re-bidpursuant to Article 5. Ninety percent (90%) of the full-timeemployees holding bid jobs will be guaranteed a minimum of eight (8) hours pay per day when put to work and the standard guaranteed workweek shall be forty (40) hours per week. Theremaining ten percent (10%) of employees holding bid jobs shallhave a four (4) hour guarantee when put to work. Work shall bescheduled for five (5) consecutive days, Sunday through Thursday,Monday through Friday or Tuesday through Saturday.Notwithstanding the above, the Company shall also have the rightto maintain a sufficient number of full-time employees without aposted or established schedule in order to handle unscheduled andextra ad hoc work.

One and one-half (1 ½) times the regular hourly rate shall be paidfor all work performed on the seventh (7th) consecutive day ofwork, except where the seventh (7th) consecutive day of work fallson Sunday, in which case double time shall be paid.

Section 3. OvertimeAll hours worked in excess of eight (8) hours in any one (1) day orforty (40) hours in any one (1) week shall be paid at the rate of timeand one-half (1 ½) the regular hourly rate, but not both. Overtimeshall not be pyramided. Pay for hours not worked shall not counttoward the forty (40) hour threshold.

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All hours worked on Sundays or holidays or on the seventh (7th) con-secutive day or in excess of ten (10) hours per day shall not applyagainst the guarantee but must be paid in addition to the guarantee.

The Company will make a reasonable effort to notify non-drivingemployees at least one (1) hour in advance of overtime.

Section 4. work in Other ClassificationsFull and casual employees will be paid an hourly rate commensu-rate with the work they are performing.

ARTICLE 19POSTING

Section 1. Posting of AgreementA copy of this Agreement shall be posted in a conspicuous place.

Section 2. Union Bulletin BoardsThe Employer agrees to provide suitable space for the Union bul-letin board. Postings by the Union on such boards are to be confinedto official business of the Union and on the Union’s official letter-head or TITANS. The Employer shall not remove, tamper with oralter any notice posted by the Union unless such notice is harmfulto the Employer.

All Union bulletin boards must be glass encased and the stewardand Business Agent given a key. The Employer shall have ninety(90) days to comply.

ARTICLE 20COOPERATION OF EMPLOyEES/FAIR dAy’S

PAy

Section 1. Cooperation of Employees, Companyand UnionThe parties agree that at all times as fully as it may be within their

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power to cooperate so as to protect the long-range interests of theemployees, the Company, the Union and the general public servedby the parties to this Agreement.

Section 2. Fair day’s work for Fair day’s PayThe Union and the Company recognize the principle of a fair day’s work for a fair day’s pay. Jobs and job security of employeesworking under this Agreement are best protected through efficient and productive operations of the Company and the trucking industry. This principle shall be recognized in the administration of this Agreement and the resolution of all griev-ances thereunder.

The Employer shall not in any way intimidate, harass, coerce oroverly supervise any employee in the performance of his or herduties. The Employer will treat employees with dignity and respectat all times, which shall include, but not be limited to, giving dueconsideration to the age and physical condition of the employee.Employees will also treat each other as well as the Employer withdignity and respect.

Section 3. Safety and Health CommitteeThere shall be a Safety and Health Committee comprised of a mutu-ally agreed to number of bargaining unit representatives and up toan equal number of management representatives.

Bargaining unit members who seek to serve on the Safety andHealth Committee may volunteer to do so, with approval of the Local Union. The Union co-chair of the com-mittee shall be selected by the bargaining unit members of the committee. The Employer will provide the Local Union with the names of the management representatives on the committee.

Section 4. Other Participation TeamsThe Company and TNUPSFNC may mutually agree to other committees as appropriate. Agreement will not be unreasonablywithheld.

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ARTICLE 21UNION ACTIvITIES/LEAvE OF ABSENCE

Section 1. Union Activities(a) Any employee, member of the Union, acting in any officialcapacity whatsoever shall not be discriminated against for his/heracts as such officer of the Union so long as such acts do not inter-fere with the conduct of the Company’s business, nor shall there beany discrimination against any employee because of Union mem-bership or activities.

(b) The Company agrees to grant employees reasonable time offwithout pay without discrimination or loss of seniority rights toattend a labor convention or union meeting called by the LocalUnion, provided at least forty-eight (48) hours written notice isgiven by the Local Union to the Company specifying the length oftime off and provided that there shall be no disruption of theCompany’s operations. The Company’s consent to such requestsshall not be unreasonably denied.

(c) Authorized agents of the Union shall have access to theCompany’s premises during working hours for the purpose ofadjusting disputes, investigating working conditions, collectingdues and ascertaining that this agreement is being adhered to, pro-vided, however, that there is no interruption of the Company’sworking schedule.

Section 2. Leave of Absence(a) When an employee in any job classification requiring driving has his/her operating privilege or license suspended or revoked for reasons other than medical disqualification or thosefor which the employee can be discharged by the Company, a leaveof absence without loss of seniority, not to exceed two (2) years,shall be granted for such time as the employee’s operating licensehas been suspended or revoked. The employee will be given avail-able work opportunities to perform non-CDL required job func-tions.

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(b) A Union member elected or appointed to serve as a Union offi-cial shall be granted a leave of absence during the period of suchemployment, without discrimination or loss of seniority rights, andwithout pay.

Section 3. Medical disqualification(a) A driver who is judged medically unqualified to drive, but isconsidered physically fit and qualified to perform other inside jobs,will be afforded the opportunity to displace the least senior full-timeor casual inside employee at such work until he/she can return tohis/her driving job. However, if the displacement of a full-timeemployee with a CDL would negatively affect the employer’s oper-ations, the medically disqualified driver may only displace a casualinside employee. “Red-circled” non-CDL cartage employees shallnot be subject to displacement in this process. While performing theinside work, the driver will be paid ninety percent (90%) of theappropriate rate of pay for the full-time classification of work beingperformed. The Company shall attempt to provide eight (8) hours ofwork, if possible, out of available work.

(b) In addition to those already covered by this section, disqualifieddrivers who are actively pursuing a waiver or exemption with theDOT may work inside pursuant to this section if there is a reason-able expectation that his or her waiver/exemption will be granted.

ARTICLE 22SEPARATION OF EMPLOyMENT

Upon discharge or quitting, the Employer shall pay all money due to theemployee on the employee’s regular payday in the week following suchseparation from employment unless otherwise required by applicable law.

ARTICLE 23TIME SHEETS, TIME CLOCkS ANd vIdEO

CAMERASSection 1. Time Sheets and Time Clocks(a) In over-the-road or line operations, the Company shall provideand require the employee to keep a time sheet or trip card showing

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the arrival and departure at a service center and intermediate stopsand cause and duration of all delays, time spent loading and unload-ing, and same shall be turned in at the end of each trip. In city oper-ations, a daily time record shall be maintained by the Company.

(b) Employees shall punch their own time cards.

(c) The Company shall maintain sign-in and sign-out records atservice centers. All road drivers must record their arrival, departure,origin and destination.

(d) The Company may substitute updated time-recording equip-ment for time cards and time sheets. However, printed time recordswill be made available to employees upon request.

Section 2. video CamerasThe Company may install and operate video cameras in all publicareas of the Service Center to help the Company in assuring thesafety and security of employees, Company property and customerfreight. The Company shall not install or use video cameras in areasof the Company’s premises that violate the employee’s right to pri-vacy such as in bathrooms or places where employees change cloth-ing or provide drug or alcohol testing specimens.

The Company may use video cameras to discharge an employeewithout corroboration by observers if the employee engages in con-duct such as dishonesty, theft of property, vandalism, or fighting forwhich an employee could be discharged without a warning letter. Ifthe information on the video tape is to be utilized for any purposein support of a disciplinary or discharge action, the Company mustprovide the Local Union, prior to the hearing, an opportunity toreview the video tape used by the Company.

Section 3. Computer Tracking devicesNo employee shall be disciplined solely based upon informationderived from a GPS or any other technology enhancements ordevices unless the employee engages in conduct creating imminentdanger to other employees or the general public or other conductsuch as dishonesty or recklessness resulting in a serious accident.

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ARTICLE 24LEAvE OF ABSENCE

Section 1. Jury duty LeaveWhen an employee is required to miss time from the regularlyscheduled work week because of an obligation to serve on a jury,the employee must give prior notice to his/her supervisor with acopy of the letter requiring jury duty service. The employee is obli-gated to minimize the number of hours missed from work for juryduty service provided, however, that when an employee reports forjury duty service on a scheduled work day, the employee will notunreasonably be required to report for work that particular day. TheCompany reserves the right to verify the necessity of any hoursmissed from work due to jury duty service. Full-time employeeswill be paid the difference between the regular hourly rate and anyremuneration received for jury duty service.

Section 2. Subpoenas, Summons and voluntaryAppearancesWhen an employee is required to miss time from the regularlyscheduled work week because of a subpoena, summons or volun-tary appearance to testify in a legal matter (other than approvedCompany related matters), the employee must give adequate noticeto his/her supervisor. An hourly employee may take time off as paidvacation or as unpaid excused absence. In case an employee is sub-poenaed by the Company as a witness, he/she shall be reimbursedfor all time lost and expenses incurred.

Section 3. Family and Medical LeaveThe Company shall provide unpaid leave subject to the terms of theFamily and Medical Leave Act (FMLA) of 1993.

Section 4. Funeral LeaveFull-time employees who have been employed for six (6) monthsare eligible for funeral leave. A maximum of two (2) days leavewill be paid to employees for missed time from work on account ofthe death of an immediate family member, to include the employ-

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ee’s spouse, children, grandchildren, parents, grandparents, broth-ers, sisters and children and parents of the spouse. An employeeshall be eligible for a third paid day of leave if the location of thefuneral requires the employee to miss work the next day due to trav-el. To be eligible for funeral leave, the employee must attend thefuneral or service. Pay for funeral leave is calculated on the basisof eight (8) hours at straight time hourly rate of pay.

Section 5. Personal LeaveFull-time employees will be allowed a personal leave of absencewithout pay not to exceed thirty (30) calendar days if:

1. It is requested in writing to the Service Center Manager, and

2. Management believes the leave is for good reason and does notinterfere with business operations. Approval for such leave shall notbe unreasonably denied.

If an employee takes another job elsewhere during leave approvedunder Section 3 or 5 of this Article, the employee will be consideredas having resigned.

A personal leave of absence may be extended for an additional thir-ty (30) calendar days if there is good reason and managementapproves it. Approval for such extension shall not be unreasonablydenied. The employee must request the extension in writing beforethe first leave expires.

Employees on personal leave will not earn vacation or be entitled topaid holidays. All benefits will continue up to two (2) months ifpaid for in advance by the employee.

Employees who take a personal leave of absence are not eligible forunemployment compensation during the leave period.

Section 6. Casual FMLACasual employees who have worked for the Company for a minimumof thirty-six (36) months and accrued at least 625 paid hours during thepast twelve (12) months, are eligible for unpaid leave as set forth

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below, except that the amount of leave allowed will be computed atone-half (1/2) of the time provided by the FMLA. Eligible employeesare entitled up to a total of six (6) weeks of unpaid leave during anytwelve (12) month period for the following reasons:

1. Birth of a child;

2. Adoption, or placement for foster care;

3. To care for a spouse, child, or parent of the employee due to aserious health condition;

4. A serious health condition of the employee.

The employee’s seniority rights shall continue as if the employeehad not taken leave under this section, and the Employer will main-tain health insurance coverage during the period of the leave.

The Employer may require the employee to substitute accrued paidvacation or other paid leave for part of the six (6) week leave period.

The employee is required to provide the Employer with at least thir-ty (30) days advance notice before FMLA leave begins if the needfor leave is foreseeable. If the leave is not foreseeable, the employ-ee is required to give notice as soon as practicable. The Employerhas the right to require medical certification of a need for leaveunder this Act. In addition, the Employer has the right to require asecond (2nd) opinion at the Employer’s expense.

The provisions of this section are in response to the Federal Act andshall not supersede any state or local law which provides for greateremployee rights.

ARTICLE 25BENEFITS

Section 1. Medical Plans(a) From August 1, 2013 until January 1, 2014, covered employees,current retirees and employees who retire during this period will be

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covered by Article 25, Section 1 of the 2008-2013 UPS FreightAgreement.

(b) Effective January 1, 2014, health and welfare coverage for all full-time and part-time employees on the payroll at that time and thosehired thereafter will be provided through the Central States Southeastand Southwest Areas Health & Welfare Fund (CSH&W). TheCompany shall make the necessary contributions to the CSH&W tomaintain coverage. In the event of a work related injury, contributionsshall be continued for one year. Contributions shall be continued forfour (4) weeks in the event of off-the-job illness or injury.

(c) Employees covered by CSH&W shall be obligated to pay thefollowing monthly amounts as a premium for the coverage:

Single .....................................................................................$45.00E/ee Plus .................................................................................$90.00E/ee & Family ......................................................................$135.00

(d) The terms of the medical coverage shall be available from theCSH&W.

(e) Effective January 1, 2014, all future retirees will receive med-ical coverage through the CSH&W plan.

Section 2. discretionary daysFull-time employees shall be eligible to receive four (4) discre-tionary personal days thirty-two (32) hours each calendar year.These days may be used in scheduling time off for any purpose,including illness, appointments, care of family members, obser-vance of religious holidays, etc. This time shall be taken as a wholeday (8 hours). Except for emergency situations, discretionary timemust be scheduled and approved in advance by management.Unused time related to these discretionary personal days may beaccrued at the current rate and carried over from year to year for thelife of the Agreement. An employee may request payment for anyaccrued discretionary days; payment will be made within ten (10)days of the request. Discretionary days will be paid at the rate atwhich they were accrued. All employees entering a full-time job

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classification will receive four (4) days after one (1) year of full-time employment, and will receive four (4) discretionary days eachsubsequent calendar year.

Section 3. 401(k) PlanAll full-time and casual employees shall continue to be eligible toparticipate in the Teamsters UPS National 401(k) Tax DeferredSavings Plan in accordance with the terms of that Plan. TheEmployer shall withhold from an employee’s earnings, amountsmutually agreed between the Employer and the employee, anddeposit such monies into a 401(k) account in the employee’s namein compliance with the Internal Revenue Code and ERISA.

Section 4. HolidaysThe Employer will pay full-time employees for the following eight(8) holidays each year provided they work either the day before andthe day after the holiday or are on an approved paid absence:

New Year’s DayMemorial DayIndependence DayLabor DayThanksgiving DayDay after ThanksgivingChristmas EveChristmas Day

Casual employees will receive the above holidays plus an addition-al floating holiday to be taken on any day selected by the employeewith his manager’s approval.

Full-time employees will be eligible to receive eight (8) hours payfor each of the foregoing paid holidays. Casual employees are eli-gible to receive holiday pay for those holidays in the amount of one-fifth (1/5) of their week’s pay of the work week preceding the weekof the holiday.

Employees hired after April 8, 2008 will be eligible for paid holi-days only after one year of active employment.

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Section 5. vacations(a) Weeks of Vacation

Full-time employees will be awarded paid vacation based on serv-ice. The first award of vacation is conferred on January 1 follow-ing the employee’s date of hire. Subsequent awards are conferredon January 1 of each year. Incremental increases in vacation daysare conferred on January 1 of the year in which the anniversary yearof service occurs. The amount of vacation to be conferred on eachJanuary 1 will be determined in accordance with Section 5(b)below. All vacation must be used during the calendar year or it willbe lost.

Vacation day awards are set forth in the following schedule:

Years of Service Days of Vacation

1 year 5

2-7 years 10

8-15 years 15

16-25 years 20

26 or more years 25

(b) Full-time Vacation Accrual

1. To be eligible for employees’ full vacation during the first (1st)calendar year in which the employee was employed, an employeemust have worked one hundred and fifty-six (156) reports, but neednot to have been employed for the full calendar year.

If the employee worked less than one hundred and fifty-six (156)reports during this calendar year, but did attain seniority, theemployee’s vacation shall be pro-rated by earning one (1) day ofvacation for each forty (40) reports, and taken after the employeehas been employed one (1) full year.

The employee who attains one hundred and fifty-six (156) reports

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during the first calendar year shall enjoy a January 1st date of thecalendar year they were employed as a vacation anniversary datefor accumulating earned vacation. Employees who do not attainone hundred and fifty-six (156) reports that year will have a January1st date of the following calendar year as a vacation anniversary.

2. During each vacation year, the employee must work one hundredand fifty-six (156) reports to earn their vacation. Computation of theone hundred and fifty-six (156) reports shall include paid time offsuch as vacation, holidays, jury duty and funeral leave. Seniorityemployees who worked less than one hundred and fifty-six (156)reports during the calendar year, will be entitled to a pro-rata vaca-tion day for each forty (40) reports times the weeks of vacation thatthey are entitled to.

(c) Full-time Vacation Selection

1. The Company will post a vacation schedule for bid by December1st of each year showing the weeks available for vacation the nextcalendar year and the number of employees in each classificationwho may be on vacation each week. The Company will make vaca-tion available for bid based upon the needs of the operation.Employees shall have fourteen (14) days to submit their bid.Awards shall be in seniority order within classification. Insufficientbidders will be assigned vacation week(s). If an employee desirespay in lieu of vacation, he shall be required to indicate such on hisbid. The Company shall have the right to accept the offer of payversus vacation or award the time off. Once scheduled, vacationweeks may only be moved by mutual agreement between theCompany and employee or as a result of the application of theFamily Medical Leave Act. However, if the Company blocks outweeks for vacation as a part of the annual bid and thereafter deter-mines that some of those weeks can be used for vacation, theCompany shall make those vacation weeks available in seniorityorder.

2. Full-time employees who have earned at least two (2) weeks ofvacation will have the option of declaring that he/she wants to splitone (1) of the available weeks of vacation into five (5) single days.

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The employee must declare this option at the time of the vacationselection. Seniority will prevail in the selection of the single day(s).Single vacation days must be selected in writing a minimum ofseven (7) working days prior to the day the employee desires off.The Company will approve or deny the request within two (2)working days of receipt. Approval shall not be unreasonably with-held. Such vacation days will be paid at the same rate as vacation.Any days not used will be paid off at the end of the year.

(d) Casual Vacations

Casual employees shall be entitled to five (5) days of unpaid vaca-tion after one (1) year of active employment. These days shall bescheduled and taken by mutual agreement with the Company. Onthe next January 1st after a casual employee attains five years ofservice, he will be eligible for five (5) days of paid vacation. A dayof vacation shall be equal to 1/52nd of the prior years total paidhours divided by five (5). Such vacation will be scheduled, takenand/or paid by mutual agreement with the Company.

(e) Accrued or Unused Vacation

Accrued or unused vacation within any calendar year shall be paidto an employee if he retires or dies. Unused vacation shall not beconsidered accrued and will not be paid to an employee who resignsor is terminated.

Section 6. Retirement(a) Effective January 1, 2008, full-time and casual employeesceased to be covered by the UPS Retirement Plan and insteadbecame covered by the UPS Pension Plan. Until December 31,2013, the benefit formula for current and future full-time and casu-al employees will remain unchanged from the benefit formula ineffect for the UPS Retirement Plan on December 31, 2007. Noadditional benefits will accrue under that formula after December31, 2013, except as may be provided for those employees coveredby paragraph (c) below. After that date, additional benefits will beaccrued in accordance with paragraphs (b) or (c) below, as applica-ble.

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(b) Effective January 1, 2014, eligible full-time and casual employees who have an hour of service in covered employment onor after January 1, 2014 will earn a monthly accrued benefit payableat normal retirement age equal to the amount of their monthlyaccrued benefit as of December 31, 2013 (if any) plus one hundredand five dollars ($105.00) per year times years of UPS FreightBenefit Service earned on or after January 1, 2014. In years in which an employee has less than fifteen hundred (1500) hours, he shall earn a prorated share of the one hundred and five dollars ($105.00). There shall be no limit on the number of years forwhich the one hundred and five dollar ($105.00) benefit may beearned.

(c) Effective January 1, 2014, eligible full-time and casual em-ployees who have an hour of service in covered employment on orafter January 1, 2014 and who have a Final Average Compen-sation (FAC), as defined by the UPS Pension Plan, greater than$73,000.00 as of December 31, 2013, shall be entitled to receive as aretirement benefit equal to the greater of the monthly benefit calculat-ed in accordance with paragraph (b) above or the benefit formula ref-erenced in paragraph (a) above that was in effect on December 31,2007.

(d) The UPS Pension Plan is governed by the terms of the plan document and trust agreement, both of which are incorporated herein by reference. Any claims for benefits are subject to resolu-tion solely through the UPS Pension Plan administrative claimsprocess.

(e) Nothing in this section shall affect the provision in the UPSPension Plan providing that the Monthly Accrued Benefit payableto a Participant who has attained, at least, age fifty-five (55) andcompleted at least thirty (30) years of Benefit Service as of his orher benefit commencement date shall not be reduced. Further, aParticipant who has completed at least twenty-five (25) years ofBenefit Service and who has attained at least sixty (60) years of ageas of his or her separation from service shall not have his or herMonthly Accrued Benefit reduced.

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Section 7. Other BenefitsOther existing fringe benefit programs such as, but not limited to,safety bonuses, discounted stock purchase plans, educational assis-tance programs, may be continued, modified or discontinued by theEmployer in its discretion.

ARTICLE 26wAGES

Section 1. Full-time Local Cartage Employees(a) In each of the calendar years 2014 through 2016, employees on the“Local Cartage” seniority list who have completed their progressionshall receive the following increases effective the first pay period inJanuary of each year. The general wage increases for 2017 and 2018shall be implemented in two (2) equal installments: one-half shall beimplemented in the first pay period in January and the second half willbe implemented in the first pay period after July 1 of each year.

2014 $0.50

2015 $0.50

2016 $0.50

2017 $0.50

2018 $0.50

(b) Employees on the “Local Cartage” seniority list who are still inprogression on August 1, 2013 shall receive the general wageincreases set forth above but shall and will be paid no less than whatthey are entitled to in accordance with their current progression setforth in the 2008-2013 Agreement. Upon completion of that pro-gression the employee shall continue to receive the general wageincreases set forth in paragraph (a) above.

(c) Employees entering a full-time Local Cartage job after August1, 2013 (whether promoted from casual or as a new hire) shall bepaid in accordance with the following progression when performingjockey, helper or dock work:

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Start $16.75

Seniority $17.25

Twelve (12) months $18.25

Twenty-four (24) months $19.55

Thirty-six (36) months $23.40

Forty-eight (48) months Top Rate

When an employee completes the above progression he/she shall beeligible thereafter to begin receiving the general wage increases setforth in paragraph (a) above. Employees bidding into a new full-time non-CDL position after August 1, 2013, shall be paid eightypercent (80%) of the progression rates in (c) above. Once the pro-gression is completed the employee shall receive eighty percent(80%) of the Top Rate.

(d) Employees entering full-time Local Cartage job after August 1,2013 shall be paid in accordance with the following progressionwhen performing local driving work:

Start $17.20

Seniority $17.70

Twelve (12) months $18.70

Twenty-four (24) months $20.00

Thirty-six (36) months $24.00

Forty-eight (48) months Top Rate

When an employee completes the above progressions he/she shallbe eligible thereafter to begin receiving the general wage increasesset forth in paragraph (a) above.

(e) The “Top Rate” referred to in the full-time schedules in thisArticle shall be as follows:

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Dock Dock Jockey Local/Leadman Worker Road Driver

(Full-Time)1/1/14 $26.30 $26.05 $26.30 $26.651/1/15 $26.80 $26.55 $26.80 $27.151/1/16 $27.30 $27.05 $27.30 $27.651/1/17 $27.55 $27.30 $27.55 $27.907/1/17 $27.80 $27.55 $27.80 $28.151/1/18 $28.05 $27.80 $28.05 $28.407/1/18 $28.30 $28.05 $28.30 $28.65

Section 2. Full-Time Road Employees(a) In each of the calendar years 2014 through 2016, employees onthe “Over the Road” seniority list who have completed their pro-gression shall receive the following increases effective the first payperiod in January of each year. The general wage increases for 2017and 2018 shall be implemented in two (2) equal installments: one-half shall be implemented in the first pay period in January and thesecond half will be implemented in the first pay period after July 1of each year.

2014 .01252015 .01252016 .01252017 .01252018 .0125

(b) Employees still in progression on August 1, 2013 shall receivethe mileage rate increases set forth above but shall and will be paidno less than what they are entitled to in accordance with their cur-rent progression set forth in the 2008-2013 Agreement. Upon com-pletion of that progression, the employee shall continue to receivethe mileage rate increases set forth in paragraph (a) above.

(c) Employees first entering the “Over-the-Road” driver classifica-tion after August 1, 2013 will be paid in accordance with the fol-lowing progression:

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Start Seniority 12 24 36 48Months Months Months Months

Single .4342 .4468 .4720 .5049 .6058 Top Rate

Sleeper (per dvr.) .2290 .2357 .2490 .2663 .3196 Top Rate

Triple .4408 .4536 .4792 .5125 .6150 Top Rate

Sleeper Triple (per dvr.) .2330 .2397 .2533 .2709 .3251 Top Rate

To the extent the road driver is paid on an hourly basis, the rates setforth in Section 1 for the local driver (including the “Top Rate”)shall apply.

Upon completion of this progression, the road driver shall be eligi-ble thereafter to begin receiving the mileage rate increases set forthin paragraph (a) above.

Section 3. Casual Employees(a) In each of the calendar years 2014 through 2016, casualemployees who have completed their progression shall receive thefollowing increases effective the first pay period in January of eachyear. The general wage increases for 2017 and 2018 shall be imple-mented in two (2) equal installments: one-half shall be implement-ed in the first pay period in January and the second half will beimplemented in the first pay period after July 1 of each year.

2014 $0.50

2015 $0.50

2016 $0.50

2017 $0.50

2018 $0.50

(b) Casual employees still in progression on August 1, 2013 shallreceive the same general wage increases set forth above but shalland will be paid no less than what they are entitled to in accordancewith their current progression set forth in the 2008-2013Agreement. Upon completion of that progression, the employee

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shall continue to receive the general wage increases set forth inparagraph (a) above.

(c) Casual employees hired after August 1, 2013 shall be paid inaccordance with the following:

Start $12.00

Twelve (12) months $13.00

Twenty-four (24) months $14.50

Thirty-six (36) months $15.50

Forty-eight (48) months Top Rate

The “Top Rate” referred to in the above schedule shall be sixteendollars and fifty cents ($16.50). Once a casual employee completesthat progression, he/she shall be eligible thereafter to begin receiv-ing the hourly wage increases set forth in paragraph (a) above. Acasual employee who is awarded a full-time job shall begin the full-time progression at the seniority rate if his/her rate is below the sen-iority rate of the new full-time job. If a casual employee’s rate ishigher than the seniority rate of the new job, he/she will be red cir-cled until such time as the calculated progression rate exceeds theemployee’s rate.

Section 4. Clerical Rates (a) In each of the calendar years 2014 through 2016, clerical employ-ees who have completed their progression shall receive the followingincreases effective the first pay period in January of each year. Thegeneral wage increases for 2017 and 2018 shall be implemented in two(2) equal installments: one-half shall be implemented in the first payperiod in January and the second half will be implemented in the firstpay period after July 1 of each year.

2014 $0.50

2015 $0.50

2016 $0.50

2017 $0.50

2018 $0.50

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(b) Clerical employees still in progression on August 1, 2013 shallreceive the same general wage increases set forth above but shalland will be paid no less than what they are entitled to in accordancewith their current progression set forth in the Addendum in the2008-2013 Agreement. Upon completion of that progression, theemployee shall continue to receive the general wage increases setforth in paragraph (a) above.

(c) Employees entering a full-time clerical job after August 1, 2013shall be paid in accordance with the following progression whenperforming clerical work:

Start $14.00

Seniority $15.00

Twelve (12) months $16.00

Twenty-four (24) months $17.00

Thirty-six (36) months $17.50

Forty-eight (48) months Top Rate

The Top Rate shall be eighteen dollars ($18.00).

(d) Employees entering a part-time clerical job after August 1,2013 shall be paid in accordance with the following progressionwhen performing clerical work:

Start $10.50

Twelve (12) months $12.00

Twenty-four (24) months $13.50

Thirty-six (36) months $14.00

Forty-eight (48) months Top Rate

The Top Rate shall be fifteen dollars ($15.00).

Section 5. Paid for TimeAll employees covered by this Agreement shall be paid for all timespent in the service of the Employer. Time shall be computed from the

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time an employee reports and is available until the time he is effec-tively cleared from duty. Road drivers will be paid on a mileage basisfor miles driven and for time incidental to the performance of drivingduties, including, but not limited to, any rest breaks to which theemployee may be entitled, pre-trip inspections, in-route breaks, in-route tire checks, logging, post trip inspection, vehicle conditionreport, traffic delays, AVR arrival/dispatches, reporting of breakdown,reporting of accidents, tractor wash, check bay time, reefer checks andpre-trip shop time. Except as otherwise specified in this Agreement, allother time spent by a road driver on the clock shall be compensated atthe local cartage wage rate for dockwork.

ARTICLE 27dRUG ANd ALCOHOL TESTING

Section 1. Controlled Substances TestingThe parties have agreed that the procedures as set forth in thisArticle shall be the methodology for all testing and will be modifiedonly in the event that further federal legislation or Department ofTransportation (DOT) regulations (as set forth in 49 CFR Parts 40and 382) require revised testing methodologies or requirements dur-ing the term of this Agreement. To the extent that a subject is notcovered by this Article the appropriate regulation shall control.

Should other categories, modifications or types of testing berequired by the government, the parties will meet as expeditiouslyas possible to develop a mutually agreeable procedure.

Section 1.1 Employees who Must Be TestedUPS Freight employees subject to Department of Transportationmandated drug testing are drivers of vehicles with a vehicle weightrating over 26,000 pounds, requiring a Commercial Drivers License(CDL). This includes employees who relieve for vacations or othertemporary vacancies.

In addition to testing mandated employees, controlled substancetesting will be required as part of prequalification for driver posi-tions.

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Employees covered by this Collective Bargaining Agreement whoare not subject to DOT mandated drug testing are subject to thesame types of test as those employees who are covered by the DOTregulations. The substances for which testing shall be conducted,and cut-off levels thereto, shall be consistent with those listed forthe DOT covered employees. This provision also applies to testingconducted pursuant to rehabilitation and after care programs.

Section 1.2 TestingBecause of the consequences that a positive test result has on anemployee, UPS Freight will employ a very accurate, two-stage testingprogram. Urine samples will be analyzed by a highly qualified inde-pendent laboratory which is certified by the Department of Health andHuman Services (HHS). All samples will be tested according to DOTdrug testing requirements. Validity testing for the presence of adulter-ants shall be conducted on all specimens, per HHS requirements.

Section 1.3 Screening TestThe initial test uses an immunoassay to determine levels of drugs ordrug metabolites. The following initial cutoff levels shall be usedwhen screening specimens to determine whether they are negativefor these five (5) drugs or drug classes.

Substance Initial Test Level (ng/ml)Marijuana Metabolites 50Cocaine Metabolites 1506-Acetylmorphine 10Opiate Metabolites 2000 Phencyclidine 25Amphetamines 500MDMA/MDA/MDEA 500

These substances and test levels are subject to change by theDepartment of Transportation as advances in technology or otherconsiderations warrant.

Section 1.4 Confirmatory TestAll specimens identified as positive on the initial test shall be con-firmed using gas chromatography/mass spectrometry (GC/MS)

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techniques at the cutoff values listed. The following cutoff levelsshall be used to confirm the presence of drugs or drug metabolites:

Substance Confirmatory Test Level (ng/ml)Marijuana Metabolite (1) 15Cocaine Metabolite (2) 100Opiates:Morphine (3) 20006-Acetylmorphine 10Codeine (3) 2000

Phencyclidine 25Amphetamines:Amphetamine 250Methamphetamine (4) 250MDMA/MDA/MDEA 250

(1) Delta-9-tetrahydrocannabinol-9-carboxylic acid (THCA)

(2) Benzoylecgonine confirmatory cutoff of 100 ng/ml.

(3) Test for 6-AM when morphine concentration is greater than orequal to 2000 ng/ml. Morphine is the target analyte forcodeine/morphine testing.

(4) Specimen must also contain amphetamine at a concentrationgreater than or equal to one hundred (100) ng/ml before report-ing methampetamine positive.

(5) Methyleneddioxymethamphetamine (MDMA) and its analytesMDA and MDEA.

In the event the initial urine test indicates a positive response theconfirmatory test must be done. These substances and test levelsare subject to change by the Department of Transportation asadvances in technology or other considerations warrant.

Section 1.5 Laboratory TestingAll laboratories selected by UPS Freight for analyzing ControlledSubstances Testing will be HHS certified.

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Section 1.6 Types of Testing RequiredTesting procedures will be performed as part of pre-qualified prac-tices, after defined DOT reportable accidents, on the basis of rea-sonable cause, upon return to duty after a positive test, under ran-dom testing and as follow-up testing for post drug rehabilitation.

Section 1.7 Pre-qualification TestingControlled substance testing will be part of UPS Freight’s regulat-ed pre-qualification conditions for driver positions.

Drivers will be advised in writing prior to the application processthat pre-qualification testing will be conducted to determine thepresence of controlled substances. Applicants will be required toacknowledge in writing an understanding of this request before theyreceive an application.

Section 1.8 Reasonable Cause TestingUpon reasonable cause, UPS Freight will require an employee to betested for the use of controlled substances.

Reasonable cause is defined as an employee’s observable action,appearance, or conduct that clearly indicates the need for a fitnessfor duty medical evaluation.

The employee’s conduct must be witnessed by at least one (1)supervisor, two (2) if available. The witnesses must have receivedtraining in observing a person’s behavior to determine if a medicalevaluation is required. When the supervisor(s) confront(s) anemployee, a Union representative should be made available, ifrequested. If no steward is present, the employee may select anoth-er hourly paid employee to represent him.

Documentation of the employee’s conduct shall be prepared andsigned by the witnesses within twenty-four (24) hours of theobserved behavior, or before the test results are released, whichev-er is earlier. In addition, a copy will be sent to the Local Union in atimely manner. The employee shall not be required to waive anyclaim or cause of action under law.

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Section 1.9 Post-Accident drug TestingAll employees will be required to submit to a drug test after a DOTdefined serious accident, which is one in which:

1. There is a fatality, or;

2. A citation is issued and there is bodily injury to a person who, asa result of the injury, receives immediate medical treatment awayfrom the scene of the accident, or;

3. A citation is issued and one or more motor vehicles incur dis-abling damage as a result of the accident requiring a vehicle to betransported away from the scene by a tow truck or other vehicle.

Non-DOT mandated employees may be required to submit to drugtesting if there is any reasonable suspicion of drug usage or reason-able cause to believe that the employee has been operating a vehi-cle while under the influence of drugs, or reasonable cause tobelieve the employee was at fault in the accident and drug usagemay have been a factor.

Drivers are required to submit to such testing as soon as possible,but in all events within thirty-two (32) hours. Union representationwill be made available, as provided in this Agreement.

It is not the intention of this language to prohibit the driver fromleaving the scene of an accident for the period of time necessary toobtain assistance in responding to the accident or to receive neces-sary medical attention.

The result of a urine test for the use of controlled substances, con-ducted by federal, state, or local officials having independentauthority for the test, shall be considered to meet the requirementsof post-accident testing, provided such tests conform to applicablefederal, state or local requirements, and that the results of the testsare obtained by the Employer.

Section 1.10 NotificationUPS Freight employees, subject to random drug testing, will be

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notified of testing in person or by direct phone contact. Notificationshall be given by the management person responsible for such noti-fication. The procedure for selection of employees for random test-ing shall comply with DOT regulations. A copy of the proceduresshall be supplied to the Union. The procedure shall be subject to theapproval of the Union’s UPS Freight Safety and Health Committee,which approval shall not be withheld unreasonably.

Section 1.11 Rehabilitation and Testing After ReturnTo duty/SAP and Employer dutiesAll employees shall be entitled to a leave of absence on a one-timebasis for the purpose of rehabilitation for substance abuse. Suchleave must be requested prior to notification of a drug or alcohol testand prior to engaging in any conduct that results in discipline.

The employee will be permitted to return to work from an approvedleave of absence for rehabilitation, after the SAP has determinedthat the employee has successfully complied with prescribed edu-cation and/or treatment and the employee has provided a negativedrug test result, as per cutoff levels contained in Section 1.3 orSection 1.4 of this Article, as applicable, and/or an alcohol test withan alcohol concentration less than 0.02.

It is understood that if the grievance procedure is utilized contrac-tual time limits on disciplinary action and the employee’s requestfor rehabilitation will be suspended until resolution of the griev-ance.

Substance Abuse Professional (SAP)Each Substance Abuse Professional (SAP) must be a licensedDoctor of Medicine or Osteopathy, or a licensed or certified psy-chologist, social worker, employee assistance professional, or drugand alcohol counselor (certified by the National Association ofAlcoholism and Drug Abuse Counselors Certification Commission)with knowledge of and clinical experience in the diagnosis andtreatment of alcohol and controlled substance-related disorders andbe knowledgeable of the SAP function as it relates to Employerinterest in safety-sensitive functions and applicable DOT agency

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regulations. In addition, the SAP shall keep current on applicableDOT agency regulations and comply with the DOT qualificationtraining and continuing education requirements.

The SAP is responsible for performing the following functions:

1. Conducting the initial face-to-face clinical assessment and eval-uation to determine what assistance is needed by the employee tosolve problems associated with alcohol and/or drug use;

2. Referring the employee to an appropriate education and/or treat-ment program;

3. Conducting a face-to-face follow-up evaluation to determine ifthe employee has actively participated in the education and/or treat-ment program and has demonstrated successful compliance with theinitial assessment and evaluation recommendations;

4. Providing the Employer with a follow-up drug and/or alcoholtesting plan for the employee; and

5. Providing the employee and Employer with recommendationsfor continuing education and/or treatment.

Follow-up testing shall consist of at least six (6) tests in the first(1st) twelve (12) months following the employee’s return to duty.The one (1) year period may be extended as necessary by writtenverification of the Substance Abuse Professional.

Employer ResponsibilitiesPrior to allowing an employee to return to duty, after the employeehas successfully completed rehabilitation, the employer shall:

(a) Ensure that the employee is “drug free”, based on a drug testthat shows no positive evidence of the presence of drug or a drugmetabolite in the employee’s system.

(b) Ensure that the employee has been evaluated by a SubstanceAbuse Professional (SAP) for drug use or abuse.

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(c) Ensure and confirm with the Substance Abuse Professional thatthe employee demonstrates compliance with all conditions orrequirements of a rehabilitation program in which he or she partic-ipated.

Section 1.12 disciplinary ActionEmployees may be subject to discipline up to and including dis-charge if they test positive for drugs as specified elsewhere in thisArticle. The one exception is if an employee tests positive for adrug as part of a random drug test. In such event, the employeeshall be allowed to return to work provided he has successfullycompleted rehabilitation. A second positive drug test regardless ofthe type of test, shall result in termination.

An employee shall also be subject to discipline for the followingreasons:

(a) Failure to successfully complete rehabilitation.

(b) A positive specimen as part of after-care drug testing.

(c) Failure to comply with after-care treatment plan.

(d) An adulterated or substituted specimen.

(e) An employee’s refusal to submit to a test required under thisAgreement.

Section 1.13 Preparation for TestingPursuant to Department of Transportation regulations, theEmployer reserves the right to utilize on site or off site collectionfacilities.

Upon arrival at the collection site, an employee must provide thecollection agent with:

- Photo identification issued by the Employer or a federal, state orlocal government;

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If the employee arrives without the above-listed items, the collec-tion agent should contact the responsible Human Resources manag-er.

A standard DOT approved urine custody and control form will besupplied by the appropriate laboratory for use with test for DOTmandated employees. This form must be used by all collectionfacilities and signed by the employee and the collection agent in theappropriate areas. The form used for non-DOT test will contain thesame information and procedures as the DOT form.

Section 1.14 Specimen Collection ProceduresThe Employer agrees to use the Specimen Collection Checklistapproved by the National UPSF/Union’s UPSF Safety and HealthCommittee. The checklist is to be used with the affected employeesat the collection site by the person performing the collection servic-es for the Employer.

The checklist is to be used at all locations, but it is understood thatfailure to use or the refusal to use the checklist does not invalidatea properly conducted controlled substance testing procedure. Nordoes it prohibit an employee’s recourse to the collective bargainingagreement and/or the grievance procedure.

All procedures for urine collection will follow Department ofTransportation guidelines to ensure an individual’s privacy. Anemployee who gives reason to believe that he or she may have adul-terated or substituted a sample will be required to provide a speci-men under direct observation by a same gender collection agent. Ifit is determined that an employee has adulterated or substituted asample it shall result in the termination of his/her employment.

No unauthorized personnel will be allowed in any area of the col-lection site. Only one (1) controlled substances testing collectionprocedure will be conducted at a time and the specimens can onlybe handled by the collection site person.

The employee being tested should remove any outer garments, suchas coats, jackets, hats or scarves, and should leave any personal

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belongings (purse or briefcase) with the collection agent. Theemployee shall display the items in his/her pockets to the collectionagent. If the employee requests it, the collection agent shall providethe employee a receipt for his or her belongings. The employee mayretain his or her wallet.

After washing his/her hands, the employee shall remain in the pres-ence of the collection agent and shall not have access to any waterfountain, faucet, soap dispenser, cleaning agent or other materialswhich could be used to adulterate the specimen.

The collection agent provides the employee with a new, sealed kitselected by the employee.

The employee will provide his or her specimen in a stall or other-wise partitioned area that allows for privacy. The Employer agreesto recognize all employees’ rights to privacy while being subjectedto the collection process at all times and at all collection sites.Further, the Employer agrees that in all circumstances the employ-ee’s dignity will be considered and all necessary steps will be takento insure that the entire process does nothing to demean, embarrassor offend the employees unnecessarily. Authorization for collectionunder direct observation will be in accordance with Department ofTransportation regulations. All procedures shall be conducted in aprofessional, discreet and objective manner. Refusal to provide aspecimen under direct observation when requested shall be consid-ered a refusal to test and a terminable offense.

The employee shall be instructed to provide at least forty-five (45)milliliters of urine in the collection container. The employee shallhand the specimen to the collection agent. The specimen shallremain in the sight of both the collection agent and the employee atall times. A minimum of thirty (30) milliliters of urine shall beplaced in the primary specimen container by the collection agent.The collection agent then must pour at least fifteen (15) millilitersof urine from the collection container into the second specimen bot-tle to be used for the split specimen. If the individual is unable toprovide forty-five (45) milliliters of urine, the collection agent shalldirect the individual to drink fluids, not to exceed forty (40) ouncesdistributed reasonably over a period not to exceed three (3) hours or

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until a sufficient specimen is provided, whichever occurs first. (Theoriginal specimen, if any, should be discarded, unless it was out oftemperature range or showed evidence of adulteration or tamper-ing.) If the individual is still unable to provide forty-five (45) mil-liliters of urine, he/she will be taken out of service and a medicalevaluation will be conducted within five (5) business days by alicensed physician who has the expertise in this type of medicalissue, and is approved by the Employer to determine if there is amedical reason for the inability to provide a specimen. If it is notdetermined that there is a medical reason, the individual will betreated as having refused to take the test. If the employee fails forany reason to provide forty-five (45) milliliters of urine, the collec-tion agent should contact a third party administrator (TPA) andeither the District Safety and Health Manager or another Employerdesignee.

The regulations specify the privacy procedures and the reasons tobelieve that a specimen has been adulterated which includes, but isnot limited to, conduct clearly and unequivocally indicating anattempt to substitute or adulterate the sample, e.g., abnormal urinecolor or urine temperature outside the acceptable range. All speci-mens suspected of being adulterated shall be packaged and for-warded to the laboratory for testing.

In the event of suspected specimen adulteration, a second specimenwill be immediately collected under direct observation and theentire procedure should be repeated including initiation of a newcustody and control form and separate packaging for shipping. If anemployee refuses to provide a second specimen, it shall be noted asa refusal to test and shall be a terminable offense.

The collection agent shall document any unusual behavior orappearance on the urine custody-and-control form.

Specimen handling (from one (1) authorized individual or place toanother) will always be conducted using chain-of-custody proce-dures. Every effort must be made to minimize the number of peoplehandling specimens. Both specimen containers shall be sealed andthen forwarded to an approved laboratory for testing.

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When a return-to-duty or follow-up test is being conducted, the col-lection process may be observed. If observed, the observer shall bethe same gender as the employee being tested.

When a test kit is received by a laboratory, the thirty (30) millilitersealed urine specimen container shall be removed immediately fortesting. The shipping container with the remaining sealed containershall be immediately placed in secure refrigerated storage.

If an employee is told that the first (1st) sample tested positive, theemployee may, within seventy-two (72) hours of receipt of actualnotice, request that the second (2nd) urine specimen be forwardedby the first (1st) laboratory to another independent and unrelatedHHS approved laboratory of the parties’ choice for GC/MS confir-matory testing of the presence of the drug. If an employee choosesto have the second (2nd) sample analyzed, he/she shall at that timeexecute a special checkoff authorization form to insure payment bythe employee. For those employees who choose to have the second(2nd) specimen tested, disciplinary action can only take place afterthe MRO verifies the first (1st) test as positive and the second (2nd)laboratory confirms the presence of the drug. However, the employ-ee must be taken out of service once the first (1st) test result is ver-ified as positive by the MRO while the second (2nd) test is beingperformed. If the second (2nd) laboratory report is negative, theemployee will not be charged for the cost of the second (2nd) testand will be reimbursed for all lost time. It is also understood that ifan employee opts for the second (2nd) specimen to be tested, anycontractual time limits on disciplinary action are waived.

Section 1.15 Specimen Shipping PreparationsAfter measuring temperature and visibly inspecting the urine spec-imen, the collection agent should tighten and seal the specimenshipping container.

The collection agent places a security label (initialed and dated bythe employee) over the bottle cap, overlapping the bottle sides.

A double-pouch bag will be used for shipping, with one (1) side forthe urine specimen and the other for paperwork.

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The collection agent places the urine specimen in the sealable pock-et of the specimen bag and then seals the bag.

The collection agent places laboratory copies of the urine custodyand control form in the back sleeve of the double-pouch bag.

The collection agent places the sealed specimen bag in the shippingbox.

Section 1.16 Medical Review OfficerAny person serving as a Medical Review Officer (MRO) for theCompany must be a licensed doctor of medicine or osteopathy withknowledge of substance abuse disorders, issues relating to adulter-ated and substituted specimens, possible medical causes of speci-mens having an invalid result, and applicable DOT agency regula-tions. In addition, the MRO shall keep current on applicable DOTagency regulations and comply with the DOT qualification trainingand continuing education requirements.

The MRO is responsible for performing the following functions, inaddition to those specified in the DOT regulations:

1. Reviewing the results of UPS Freight’s drug testing program.

2. Receiving all positive and negative drug test reports as pre-scribed under the DOT regulations, and making all reports of drugtest results to the Employer.

3. Within a reasonable time, notifying an employee of a confirmedpositive test result.

4. Reviewing and interpreting each confirmed positive test result inorder to determine if there is an alternative medical explanation forthe specimen’s testing positive. The MRO shall perform the follow-ing functions as part of the review of a confirmed positive testresults:

a. Provide an opportunity for the employee to discuss a positive testresult.

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b. Review the employee’s medical history and relevant biomedicalfactors. A driver is allowed to use a controlled substance (except formethadone) only when taken as prescribed by a licensed medicalpractitioner who is familiar with the driver’s medical history andassigned duties.

c. Review all medical records made available by the employee todetermine if a confirmed positive test resulted from legally pre-scribed medication or other possible explanation.

d. Verify that the laboratory report and assessment are correct.

5. Processing an employee’s request to test the split sample. Suchtesting will be conducted at the employee’s expense. The employeeshall be reimbursed by UPS Freight for any such expense should theretest provide a negative result. If a reanalysis is negative, then theMRO will declare the test cancelled.

Section 1.17 MRO determinationIf the MRO determines, after appropriate review, that there is alegitimate medical explanation for the confirmed positive testresult, the MRO shall report the test to the Employer as a negative.If the MRO determines, after appropriate review, that there is nolegitimate medical explanation for the confirmed positive testresult, the MRO shall report the positive test result to the appropri-ate member of management in accordance with DOT regulations.

Based on a review of laboratory reports, quality assurance and qual-ity control data and other drug test results, the MRO may concludethat a particular confirmed positive drug test result should be can-celled. Under these circumstances, the MRO shall report that thetest is cancelled.

Not later than seventy-two (72) hours after notification of a con-firmed positive test result or refusal to test because of adulterationor substitution, an employee may submit a written or verbal requestto the MRO for testing of the split sample. The laboratory used mustbe certified by the HHS and must follow usual chain-of-custodyprocedures.

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The employee shall be reimbursed for any pay lost if taken out ofservice based upon a positive test result which is negated by the sec-ond (2nd) test or as the result of the resolution of the grievance.

Section 1.18 Record RetentionThe Medical Review Officer is the sole custodian of individual testresults. The MRO shall retain reports of individual positive testresults for a minimum of five (5) years. Individual negative testresults will be maintained for at least twelve (12) months. UPSFreight shall maintain in a driver’s qualification file only such infor-mation as required by the DOT to document compliance with thedrug testing requirements.

Section 1.19 Release of drug Testing InformationThe MRO shall inform the employee before beginning the verifica-tion interview, that the MRO could transmit to appropriate partiesinformation concerning medications being used by the employee orthe employee’s medical condition only if, in the MRO’s medicaljudgment, the information indicated that the employee may be med-ically unqualified under applicable DOT agency rules.

When a grievance is filed as a result of a positive test the Employershall obtain from the laboratory its records relating to the drug test.Upon receiving the records, the Employer shall provide copies tothe appropriate official of the Union, by the end of the followingbusiness day after receiving the documents from the laboratory orthe MRO, as applicable, provided that the employee has executedwritten consent authorizing release to the Union, a copy of whichmust be provided to the Employer.

The Company agrees to notify the Union of any change of HHSapproved laboratories used for drug testing, for whatever reason.

Section 2. Alcohol TestingThe parties have agreed that the procedures as set forth in thisSection shall be the methodology for all testing and will be modi-fied only in the event that further Federal legislation or Departmentof Transportation regulations required by regulation, revise testingmethodologies or requirements during the term of this Agreement.

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Where such regulations allow revised testing methodologies suchmodifications shall be subject to mutual agreement by the parties.

Section 2.1 Employees who Must Be Tested UPS Freight employees subject to Department of Transportationmandated alcohol testing are drivers of vehicles with a vehicleweight rating over 26,000 pounds, requiring a Commercial DriversLicense (CDL). This includes employees who relieve for vacationsor other temporary vacancies.

Employee’s covered by this collective bargaining agreement whoare not subject to DOT mandated alcohol testing are subject to thesame types of testing as those employees who are covered by theDOT regulations.

Section 2.2 Testing Because of the consequences that a positive test result has on anemployee, UPS Freight will employ a very accurate, two-stage test-ing program. Breath samples will be collected by a Breath AlcoholTechnician (BAT), who has been trained in the use of the EvidentialBreath Testing (EBT) device, in a course equivalent to the DOT’smodel course. All samples will be tested according to DOT alcoholtesting requirements. In the event that breath testing is not possiblein such cases as reasonable cause, or post accident, the Employerhas the right to use alternative DOT approved methods.

Section 2.3 Screening Test The initial screening test uses an Evidential Breath Testing (EBT)device to determine levels of alcohol. The following initial cutofflevels shall be used when screening specimens to determinewhether they are negative for alcohol. The EBT must also be capa-ble of distinguishing alcohol from acetone at the 0.02 concentrationlevel, test an air blank, and perform an external calibration check.

Breath Alcohol Levels:

Less than 0.02 - Negative0.02 and above - Positive (Requires Confirmation Test)

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Section 2.4 Confirmatory Test All specimens identified as positive on the initial screening test,showing an alcohol concentration of 0.02 or higher, shall be con-firmed using an EBT that is capable of providing a printed result intriplicate; is capable of assigning a unique and sequential number toeach test; and is capable of printing out, on each copy of the print-ed test result, the manufacturer’s name for the device, the device’sserial number, and the time of the test.

A confirmation test must be performed not sooner than fifteen (15)minutes after the screening test, but not more than thirty (30) min-utes after the screening test.

The following cutoff levels shall be used to confirm the presence ofalcohol:

Breath Alcohol Levels:

Less than 0.02 - Negative0.02 and greater – Positive

Section 2.5 Types of Testing Required Testing procedures will be performed as part of pre-qualified prac-tices, after defined DOT reportable accidents, on the basis of rea-sonable cause, upon return to duty after a positive test, under ran-dom testing, and as follow-up testing for post alcohol rehabilitation.

Section 2.6 Reasonable Cause Testing Upon reasonable cause, UPS will require an employee to be testedfor the use of alcohol.

Reasonable cause is defined as an employee’s observable action,appearance, or conduct that clearly indicates the need for a fitnessfor duty medical evaluation.

The employee’s conduct must be witnessed by at least one (1)supervisor, two (2) if available. The witnesses must have receivedtraining in observing a person’s behavior to determine if a medicalevaluation is required. When the supervisor confronts an employee,

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a Union representative should be made available, if requested. If nosteward is present, the employee may select another hourly paidemployee to represent him.

Documentation of the employee’s conduct shall be prepared andsigned by the witnesses within twenty-four (24) hours of theobserved behavior. In addition, a copy will be sent to the LocalUnion in a timely manner.

Section 2.7 Post-Accident Alcohol Testing DOT mandated drivers will be required to submit to an alcohol testafter a DOT defined serious accident, which is one in which:

1. There is a fatality, or;

2. A citation is issued and there is bodily injury to a person who, asa result of the injury, receives immediate medical treatment awayfrom the scene of the accident, or;

3. A citation is issued and one or more motor vehicles incur dis-abling damage as a result of the accident requiring a vehicle to betransported away from the scene by a tow truck or other vehicle.

Non-DOT mandated employees may be required to submit to alco-hol testing if there is any reasonable suspicion of alcohol usage orreasonable cause to believe that an employee has been operating avehicle while under the influence of alcohol, or reasonable cause tobelieve the employee was at fault in the accident and alcohol usagemay have been a factor.

Alcohol testing will be required after accidents under the aboveconditions and drivers are required to submit to such testing withintwo (2) hours of the accident, if possible, and within eight (8) hoursat the latest.

Drivers are required to submit to such testing as soon as possiblewithin two (2) hours. Under no circumstances shall this type oftesting be conducted more than eight (8) hours after the time of theaccident.

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It shall be the responsibility of the driver to remain readily availablefor testing after the occurrence of a commercial motor vehicle acci-dent. It is also the responsibility of the driver to not use alcohol foreight (8) hours or until an alcohol test is performed under this sec-tion, whichever occurs first. Union representation will be madeavailable pursuant to this Agreement.

It is not the intention of this language to prohibit the driver fromleaving the scene of an accident for the period of time necessary toobtain assistance in responding to the accident or to receive neces-sary medical attention.

Law Enforcement TestingThe result of a breath or blood test for the use of alcohol or a urinetest for the use of controlled substances, conducted by Federal,State, or local officials having independent authority for the test,shall be considered to meet the requirements of post-accident test-ing, provided such tests conform to applicable Federal, State orlocal requirements, and that the results of the tests are obtained bythe Employer.

Section 2.8 Random TestingUPS Freight employees, subject to random alcohol testing, will benotified of testing in person or by direct phone contact. Notificationshall be given by the management person responsible for such notification. The procedure for selection of employees for randomtesting shall comply with DOT regulations. A copy of the procedures shall be supplied to the Union. The procedure shall besubject to the approval of the Union’s UPS Freight Safety andHealth Committee, which approval shall not be withheld unreason-ably.

Section 2.9 Rehabilitation and Testing after Returnto duty Employees may use the United Parcel Service Freight EmployeeAssistance Program, as well as any other referral service in choos-ing an approved program for treatment. The right to a leave ofabsence is controlled by Section 1.11.

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Upon successful completion of rehabilitation the employee shall besubject to follow-up testing. Follow-up testing shall consist of atleast six (6) tests in the first twelve (12) months following the dri-ver’s return to duty after rehabilitation leave. The one (1) year peri-od may be extended as necessary by written verification of the SAP.

Employer ResponsibilitiesPrior to allowing an employee to return to duty, after the employeehas tested positive for an alcohol concentration higher than 0.02(but lower than 0.07), or has successfully completed rehabilitation,the Employer shall:

(a) Ensure that the employee is “alcohol free”, defined as less than0.02, based on an alcohol test.

(b) Ensure that the employee has been evaluated by a SAP for alco-hol use or abuse.

(c) Ensure and confirm with the SAP that the employee demon-strates compliance with all conditions or requirements of a rehabil-itation program in which he or she participated.

Section 2.10 discipline An employee who tests positive (above 0.02) on any test (other thana positive result on a random test for the first time) shall be subjectto termination.

An employee shall have a one (1) time rehabilitation opportunity asa result of a positive random alcohol test, provided the employeehas not already taken a leave of absence for substance abuse (drugor alcohol) and the random test is less than 0.07.

In addition, the following may result in discipline up to and includ-ing discharge:

(a) Failure to successfully complete rehabilitation.

(b) A positive test, defined as 0.02 or higher, as part of post-caretesting.

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(c) Failure to comply with the after-care treatment plan.

(d) Possession of and/or consumption of an alcoholic beveragewhile on duty.

(e) An employee’s refusal to submit to a test required by thisAgreement.

Section 2.11 Preparation for TestingPursuant to Department of Transportation regulations, theEmployer reserves the right to utilize on site or off site testing facilities. Under no circumstances shall the Employer utilize UPS Freight personnel to serve as a Breath Alcohol Technician(BAT).

Upon arrival at the testing site, an employee must provide the BATwith a photo identification. If the employee arrives without thephoto identification, issued by the Employer, or a federal, state orlocal government, the BAT should contact the District Safety andHealth manager or the District Human Resources manager.

A standard DOT approved alcohol testing form must be used by alltesting facilities. The form used for non-DOT tests will contain thesame information and procedures as the DOT form.

Section 2.12 Specimen Testing ProceduresThe Employer agrees to implement a “Specimen TestingChecklist”. The checklist, approved by the UPSF/Union UPSFSafety and Health Committee, is to be used with the af-fected employees at the testing site by the person performing the testing for the Employer. The checklist is to be used at all locations, but it is understood that failure to use or the refusal to use the checklist does not invalidate a properly conducted alcoholtesting procedure. Nor does it prohibit an employee’s recourse to the collective bargaining agreement and/or the grievance procedure.

Procedures for alcohol testing will follow Department ofTransportation guidelines to ensure an individual’s privacy.

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No unauthorized personnel will be allowed in any area of the test-ing site. Only one (1) alcohol testing procedure will be conductedat a time.

The employee will provide his or her specimen in a location thatallows for privacy. The Employer agrees to recognize all employ-ees’ rights to privacy while being subjected to the testing process atall times and at all testing sites. Further the Employer agrees that inall circumstances the employee’s dignity will be considered and allnecessary steps will be taken to insure that the entire process doesnothing to demean, embarrass or offend the employees unnecessar-ily. Testing will be under the direct observation of a BAT. All pro-cedures shall be conducted in a professional, discreet and objectivemanner. Direct observation will be necessary in all cases.

The employee shall provide an adequate amount of breath for theEBT device. If the individual is unable to provide a sufficientamount of breath, the BAT shall direct the individual to againattempt to provide a complete sample. If the employee fails for anyreason to provide the requisite amount of breath, the BAT shall con-tact the District Safety and Health manager or Human Resourcesmanager.

If an employee is unsuccessful in providing the requisite amount ofbreath, the Employer then must have the employee obtain, withinfive (5) business days, an evaluation from a licensed physician cho-sen by the Employer who has the expertise in the medical issuesconcerning the employee’s medical ability to provide an adequateamount of breath. If the physician determines that a medical con-dition has, or with a high degree of probability, could have preclud-ed the employee from providing an adequate amount of breath, theemployee’s failure to provide an adequate amount of breath will notbe deemed a refusal to take the test.

If the physician is unable to make a determination that the employ-ee was medically unable to provide a sufficient amount of breath,the employee will be regarded as refusing to take the test.

The BAT shall document any unusual behavior or appearance on thealcohol testing form.

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Section 2.13 Substance Abuse Professional (SAP) Each Substance Abuse Professional (SAP) must be a licensedDoctor of Medicine or Osteopathy, or a licensed or certified psychologist, social worker, employee assistance professional, ordrug and alcohol counselor (certified by the National Association of Alcoholism and Drug Abuse Counselors CertificationCommission) with knowledge of and clinical experience in thediagnosis and treatment of alcohol and controlled substance-related disorders and be knowledgeable of the SAP function as it relates to Employer interest in safety-sensitive functions and applicable DOT agency regulations. In addition, the SAP shallkeep current on applicable DOT agency regulations and complywith the DOT qualification training and continuing educationrequirements.

The SAP is responsible for performing the following functions:

1. Conducting the initial face-to-face clinical assessment and eval-uation to determine what assistance is needed by the employee tosolve problems associated with alcohol and/or drug use;

2. Referring the employee to an appropriate education and/or treat-ment program;

3. Conducting a face-to-face follow-up evaluation to determine ifthe employee has actively participated in the education and/or treat-ment program and has demonstrated successful compliance with theinitial assessment and evaluation recommendations;

4. Providing the Employer with a follow-up drug and/or alcoholtesting plan for the employee;

5. Providing the employee and employer with recommendationsfor continuing education and/or treatment.

Section 2.14 Record RetentionThe Employer shall maintain records in a secure manner, so that disclosure of information to unauthorized persons does notoccur.

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Each Employer or its agent is required to maintain the followingrecords for two (2) years:

1. Records of the inspection and maintenance of each EBT used inemployee testing;

2. Documentation of the Employer’s compliance with the QualityAssurance Plan (QAP) for each EBT it uses for alcohol testing;

3. Records of the training and proficiency testing of each BAT usedin employee testing; and

4. Any required log books.

The Employer or its agent must maintain for two (2) years recordspertaining to the calibration of each EBT used in alcohol testing,including records of the results of external calibration checks.

Section 2.15 Release of Alcohol Testing InformationThe Breath Alcohol Technician (BAT) shall inform the employeebefore testing that the Employer will be notified if the confirmato-ry test is greater than 0.02, since the employee will be removedfrom service and considered medically unqualified to drive underDOT agency rules and regulations.

When a grievance is filed as a result of a positive test the Employershall obtain records relating to the alcohol test. Upon receiving therecords, the Employer shall provide copies to the appropriate offi-cial of the Union, by the end of the following business day afterreceiving the documents from the laboratory or the MRO, as appli-cable, provided that the employee has executed written consentauthorizing release to the Union, a copy of which must be providedto the Employer.

Section 3. Provisions Applicable to drug andAlcohol TestingSection 3.1 Leave of Absence for RehabilitationAn employee shall be permitted to take a leave of absence for the

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purpose of undergoing treatment in an approved program for alco-hol or substance abuse. Employees may use the United ParcelService Freight Employee Assistance Program (EAP), a Unionsponsored rehabilitation program, as well as any other referral serv-ice in choosing an approved program for treatment.

The leave of absence must be requested prior to the commission ofany act subject to disciplinary action except as set forth above. Theleave of absence shall be for a maximum of ninety (90) days; addi-tional time may be granted if it is mutually agreed between theCompany and the Union, or requested by the Substance AbuseProfessional (SAP). While on such leave, the employee shall notreceive any of the benefits provided by this Agreement, except thecontinued accrual of seniority.

All alcohol/drug treatment agreements including pre-care, after-care and return to work agreements entered into shall be confidential and signed by the employee and the SAP overseeingthe treatment program and must have been approved by the Local Union business agent prior to the employee’s signature. The post-care agreement shall comply with all provisions of thisArticle. The Employer agrees to recognize the employee’s rights to privacy and confidentiality while being party to such an agreement.

Section 3.2 Paid For TimeTesting - Except for drug tests taken in conjunction with a DOTphysical, the employee will be paid their regular straight timehourly rate of pay in the following manner:

1. For all time at the collection or testing site.

2. (a) If the collection or testing site is reasonably en route betweenthe employee’s home and the terminal, and the employee is going toor from work, pay for travel time one (1) way between the terminaland the collection site or the collection site to the terminal; or (b)For travel time both ways between the terminal and the collectionsite, only if the collection site is not reasonably en route between theemployee’s home and the employee’s terminal.

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Section 3.3 Off-duty dUIAny driver cited for Driving Under the Influence who does not havehis/her license suspended, or who has limited driving privileges, shallimmediately notify the Company of the citation and be assessed by aSAP within five (5) working days of the citation. If the SAP determinesthe driver does not require rehabilitation, then he/she shall be allowedto return to driving. Until the assessment is completed, the driver shallbe allowed to work inside in accordance with Article 21, Section 2 (a)for up to two years. If rehabilitation is required, the SAP shall deter-mine the terms upon which the employee may return to work. Theemployee shall be returned to driving once he/she successfully com-pletes the rehabilitation program provided his/her driving privilegeshave been restored. The one time right to rehabilitation provided in thisArticle shall not be applicable to a driver who completes a rehabilita-tion program under this paragraph, unless, as a result of the DUI cita-tion, the driver is convicted or loses his/her license for driving.

Section 4. TrainingIf the Company requires an employee to undergo substance abusetraining, the employee will be paid for such time and the trainingwill be scheduled in connection with the employee’s normal workshift, where possible.

ARTICLE 28NON-dISCRIMINATION

The Company and the Union agree not to discriminate against anyindividual with respect to hiring, compensation, terms or conditionsof employment because of such individual’s race, color, religion,sex, age, or national origin nor will they limit, segregate or classifyemployees in any way to deprive any individual employee ofemployment opportunities because of race, color, religion, sex, age,or national origin or engages in other discriminatory acts prohibitedby the Americans With Disabilities Act.

ARTICLE 29 MAINTENANCE OF STANdARdS

The Employer agrees, subject to the provisions of this Agreement, that

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all conditions of employment relating to wages, hours of work, over-time differentials and general working conditions shall be maintainedat not less than the highest standards in effect at the time of the signingof this Agreement, and the conditions of employment shall be im -proved whenever specific provisions for improvement are made else-where in this Agreement. It is agreed that the provisions of the Articleshall not apply to inadvertent or bona fide errors made by the Employeror the Union in applying the terms and conditions of this Agreement.

ARTICLE 30 MEAL PERIOd

Section 1. Road driver Meals at via PointsThe Company may direct a driver to take a meal period at a viapoint(s). If the driver is on a pre-dispatched tour of duty that ter-minates at point of origin (turnaround), the meal period [thirty (30)to sixty (60) minutes] may be taken at any time during such tour ofduty at the farthest point. Driver will not be required to take a mealperiod at a via point prior to the end of the third hour since thebeginning of their tour of duty. A meal period shall not be compul-sory at service centers where there is no accessible eating place.

Section 2. City driver MealsDrivers shall be scheduled between thirty (30) minutes and one (1)continuous hour for meals but not more than one (1) hour in eachten (10) hour period. No driver shall be compelled to take a mealperiod before he has been on duty three (3) hours or after he hasbeen on duty six (6) hours. The scheduled meal period may be var-ied by mutual agreement.

Section 3. Legal RequirementsMeal periods must be taken in accordance with applicable Federal,State and Local laws.

ARTICLE 31LOdGING

Motel rooms shall be equipped with blinds or draperies or otherwisesuitably darkened during daylight hours.

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Motel rooms shall have adequate heating and cooling systems, and,where practical and possible, individual room regulators shall bemade available.

All road drivers lodging shall be maintained on the basis of one (1)driver per room.

The Company shall furnish transportation to and from the nearestpublic transportation, where there is no unreasonable delay, at anaway-from-home service center, provided there is no public trans-portation available in the near vicinity and further provided that thisprovision shall not apply where the driver is allowed to use the trac-tor for transportation.

ARTICLE 32RAIN GEAR, GLOvES, ANd yARd LIGHTS

All hostler and yard employees shall be provided with rain gear.Any service center employee handling hazardous freight shall beprovided with rubber gloves suitable for the type of freight beinghandled. Employees handling toxic material as a first respondershall also be furnished with respirator masks and rubber gloves.The Company shall furnish adequate yard lighting at the servicecenter in accordance with the Industrial Code in the area.

ARTICLE 33SANITARy CONdITIONS

The Company agrees to maintain clean, sanitary washrooms havinghot and cold running water and with toilet facilities, and a cleanbreak/lunchroom area, unless otherwise mutually agreed. TheCompany also agrees to maintain sanitary drinking water. An emer-gency first-aid kit shall be furnished within a reasonable distance ofthe Company’s dock.

ARTICLE 34JURISdICTIONAL dISPUTES

Any jurisdictional dispute between the Local Union and any other non-Teamster union shall be resolved in accordance with

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applicable law. In the event that any dispute should arise between any Teamster Local Union signatory to this Agreement and any other Teamster-affiliated Local Union relating to the jurisdiction over employees or operations covered by thisAgreement, the Employer agrees to accept and comply with the decision or settlement of the Unions or Union bodies whichhave the authority to determine such dispute, and such disputes shall not be submitted to arbitration under this Agreementor to legal or administrative agency proceedings. It will be a violation of this Agreement if any Union or employee engages in a work stoppage or picketing in furtherance of a jurisdictionaldispute.

ARTICLE 35EMERGENCy REOPENING

In the event of war, declaration of emergency, pandemic, impositionof mandatory economic controls, adoption of national health care, or any congressional or federal agency action which has a significantly adverse effect on the financial structure of theEmployer, or adverse impact on the wages, benefits or job securityof the employees, during the life of this Agreement, either partymay reopen the same upon sixty (60) days’ written notice and request renegotiation of the provisions of this Agreementdirectly affected by such action. There shall be no limitation of time for such written notice. If no agreement is reached within sixty (60) days from the notice, the issue(s) will be submitted toexpedited interest arbitration. The arbitrator shall select the lastoffer made by either party and shall issue his/her decision within thirty (30) days of the hearing. The parties shall comply with the decision of the Arbitrator and the Company shall not makeany changes in the Agreement except those approved by theArbitrator.

If governmental approval of revisions should become necessary, allparties will cooperate to the utmost to attain such approval. Theparties agree that the notice provided herein shall be accepted by allparties as compliance with the notice requirements of applicablelaw.

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ARTICLE 36GARNISHMENTS

In the event of notice to the Company of a garnishment or impend-ing garnishment, the Company may take disciplinary action if theemployee fails to satisfy such garnishment within a seventy-two(72) hour period (limited to working days) after notice to theemployee. However, the Company may not discharge any employ-ee by reason of the fact that his earnings have been subject to gar-nishment for any one (1) indebtedness. If the Company is notifiedof three (3) garnishments irrespective of whether satisfied by theemployee within the seventy-two (72) hour period, the employeemay be subject to discipline, including discharge.

ARTICLE 37SUSPENSION OR REvOCATION OF LICENSE

ANd EMPLOyEE’S BAILSection 1. Employee Must Notify the Company ofviolationsIn the event an employee receives a traffic citation for a movingviolation which would contribute to a suspension or revocation orsuffers a suspension or revocation of his/her right to drive theCompany’s equipment for any reason, he/she must notify theCompany before his/her next report to work. Failure to comply willsubject the employee to disciplinary action up to and including dis-charge.

Section 2. Compliance with Company InstructionsIf such suspension or revocation comes as a result of his/her com-plying with the Company’s instruction, which results in a succes-sion of size and weight penalties or because he/she complied withthe Company’s instruction to drive Company equipment which is inviolation of DOT regulations, the Company shall provide employ-ment to such employee at not less than his/her regular earnings atthe time of such suspension for the entire period thereof. This para-graph shall not apply to an employee who knows that the Company

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equipment is in violation of DOT regulations before he begins hisrun, but fails to notify the Company in writing of the defectiveequipment.

Section 3. Employee BailEmployees will be bailed out of jail if accused of any offense inconnection with a condition caused or created by the Company. Ifan employee is forced to spend time in jail or the courts because ofa condition created by the Company, the employee shall be com-pensated at his/her regular rate of pay for work opportunities theemployee would have received if not in jail or the courts and shallbe reimbursed for court costs, if any.

ARTICLE 38UNION ANd COMPANy COOPERATION

Section 1. Joint CooperationThe parties agree at all times as fully as it may be in their power tocooperate so as to protect the long range interests of the employees,the Company, the Union and the general public served by the par-ties to this Agreement.

Section 2. work StoppagesAll grievances and/or questions of interpretation arising under theprovisions of this Agreement shall be submitted to the grievanceprocedure for determination. Accordingly, no work stoppage, slow-down, walkout or lockout over such grievances and/or questions ofinterpretation shall be deemed to be permitted.

ARTICLE 39 SEPARABILITy ANd SAvINGS CLAUSE

If any article or section of this Agreement should be held invalid byoperation of law or by any tribunal of competent jurisdiction, or ifcompliance with or enforcement of any Article or Section should berestrained by such tribunal pending a final determination as to itsvalidity, the remainder of this Agreement or the application of suchArticle or Section to persons or circumstances other than those as to

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which it has been held invalid or as to which compliance with orenforcement of has been restrained, shall not be affected thereby.

In the event that any Article or Section is held invalid or enforce-ment of or compliance with which has been restrained, as above setforth, the parties affected thereby shall enter into immediate collec-tive bargaining negotiations after receipt of written notice of thedesired amendments by either Employer or Union for the purposeof arriving at a mutually satisfactory replacement for such Article orSection during the period of invalidity or restraint. There shall be nolimitation of time for such written notice. If the parties do not agreeon a mutually satisfactory replacement within sixty (60) days afterreceipt of the stated written notice, the issue(s) will be submitted toexpedited interest arbitration. The arbitrator shall select the lastoffer made by either party and shall issue his/her decision withinthirty (30) days of the hearing. The parties shall comply with thedecision of the Arbitrator and the Company shall not make anychanges in the Agreement except those approved by the Arbitrator.

ARTICLE 40 CHANGE OF OPERATIONS

The parties agree that there must be a procedure to permit timelyand efficient Change of Operations in order to meet marketplacedemands and changing customer needs. The Employer agrees thatservice centers and facilities covered by this Agreement shall not betransferred, changed or modified without notification of and dis-cussion with the Local Union in accordance with this Article.

(a) The Employer agrees that prior to any change in its operation thatwill result in a change of domicile and/or possible layoff of seniorityemployees, it shall notify the affected Local Union(s) in writing andthen meet jointly with them to inform them of the proposed changesand to resolve questions raised in connection with the proposedchange. During this joint meeting the Employer and the Union shallreduce to writing all agreed upon issues and both parties shall sign thewritten document in acknowledgement of such agreement. The par-ties shall also reduce to writing all unresolved issues, if any, and theyshall be referred directly to the appropriate Regional Change ofOperations Committee. This meeting shall be completed where prac-

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tical at least thirty (30) days prior to the proposed change. The changemay not be implemented until the thirty (30) days’ notice is providedand the meeting is completed unless the operational change is dictat-ed by emergency conditions. The Union shall not unreasonably delaythe scheduling or completion of the requested meeting. Any unre-solved issues reflected in Section (c) below, which have been reducedto writing, will be resolved pursuant to that Section.

(b) Any agreed to change of operations reached by the Local Union(s)and the Employer shall be reduced to writing and filed with the JointNational Change of Operations Committee. It is understood that aregional area representative of the affected region(s) shall sit on theJoint National Change of Operations Committee.

(c) A Joint Change of Operations Committee will be established ineach of the four (4) Regional areas and will resolve issues arising outof the proposed change of operations. The Committee will resolveissues involving seniority application and layoff questions for employ-ees who are involved in the change. All affected parties will conveneand attend the Regional Joint Change of Operations Committee meet-ing prior to the scheduled implementation date to resolve these issues.

If the Regional Joint Change of Operations Committee is unable toresolve the issues, such issues shall be referred to the Joint NationalChange of Operations Committee for resolution. If the issues reflect-ed in this Section are not resolved by the Joint National Change ofOperations Committee, they shall be submitted to an expedited arbi-tration.

The Committee which decides the issues, as described above, shallretain jurisdiction for a period of twelve (12) months following thechange of operations decision. The decision of the Committee shall befinal and binding.

The following shall apply to the closing or transfer of covered work:

(1) Whenever a service center is closed and the work is transferredto or absorbed by another service center, the affected employeeswill be entitled to follow their work and their seniority shall bedovetailed at the new service center.

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(2) Whenever a service center is partially closed and the work ofcity drivers and all other regular employees, excluding over-the-road drivers, is transferred to or absorbed by another service center,the affected employees may either follow their work and have theirseniority dovetailed in the new service center or be allowed to exer-cise their seniority in their present service center and displace theleast senior employee in their respective classifications. If any ofthe employees whose work is transferred elects not to follow his/herwork, then he or she shall have the same rights as the remainingemployees on the seniority list from which the work was transferredto bid the work being transferred. Those employees who follow thework shall have their seniority dovetailed in the new service center.

(3) In a Change of Operations affecting over-the-road drivers, thefollowing language will apply: Whenever a service center is par-tially closed and the over-the-road work is transferred to orabsorbed by another service center, all over-the-road drivers, in sen-iority order, will have the option of following the available workand have their seniority dovetailed in the new service center or beallowed to exercise their seniority in their present service center,and take whatever jobs become open as a result of other employeesfollowing the work or taking a layoff. If a senior over-the-road driv-er elects to take a job which has been transferred out, the displacedemployee(s) will fill the vacated job(s) by seniority until the nextbid.

(4) The parties will meet to determine how this Article shall beapplied in the event either one of the two (2) service centersinvolved in a transfer of work has employees who are not repre-sented by the Union.

(d) In the event the Employer moves an operation more than seventy-five (75) miles, the Employer shall pay reasonable movingexpenses for all full-time employees who choose to move. In addition, to be entitled to a paid move, the employee’s commute to work must be twice as many miles as before the relocation of the operation. The expense shall include the reasonable cost ofpacking and the moving of household goods or house-trailer (if used as his/her residence) including dismounting and mounting.However, it is understood that the cost of such move shall

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not exceed six thousand dollars ($6,000.00) per move. The employ-ee(s) who transfer will have one (1) year from the date of the changeto move.

ARTICLE 41[RESERvEd]

ARTICLE 42INCLUSIvENESS OF CONTRACT

Section 1. workweek ReductionIf either the Fair Labor Standards Act or the Hours of ServiceRegulations are subsequently amended so as to result in substantialpenalties to either the employees or the Company, a written noticeshall be sent by either party requesting negotiations to amend thoseprovisions which are affected.

Section 2. New Equipment and OperationsUpon request, the Company and the Union shall meet and discussrates of pay not previously established in this Agreement for newtypes of equipment and/or operations and/or changes in law affect-ing equipment or operations.

Section 3. Extra Contract AgreementsThe Company agrees not to enter into any agreement or contractwith its employees, individually or collectively, which in any wayconflicts with the terms and provisions of this Agreement. Anysuch agreements shall be null and void.

ARTICLE 43OTHER MOdES OF TRANSPORTATION

The Employer’s right to use other modes of transportation will not result in the lay off of a driver on the payroll as of the date of ratification. Use of ground carriers will be governed by Article44.

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ARTICLE 44SUBCONTRACTING

(a) For the purpose of preserving work and job opportunities forthe employees covered by this Agreement, the Employer agrees thatno work or services of the kind, nature or type, and including newoperations or buildings, covered by, presently performed, or here-after assigned to the collective bargaining unit will be subcontract-ed, transferred, leased, assigned or conveyed in whole or in part toany other plant, person or non-unit employees, unless otherwiseprovided in this Agreement. The Employer may not subcontractwork in any classification for the purpose of avoiding overtime, orto avoid filling existing, or creating additional bargaining unit posi-tions. The Employer may not subcontract work at a facility in anyclassification if any employee who normally performs such work atthat facility is on layoff or is receiving less than his/her appropriatedaily guarantee in his/her classification.

(b) The Employer may subcontract work in order to meet servicecommitments if it does not possess the facility, equipment or per-sonnel to perform such work. In no event shall this paragraph beused as a basis to subcontract Road Driver work.

(c) The Employer may continue its practice regarding runs that donot have loads returning to the home domicile or its practice(including pay equivalency) concerning the reassignment ofCompany drivers to cover peak periods. However, if sufficientfreight is generated in the future to provide loads returning to thehome domicile, the run shall be performed by Road Drivers.

The parties agree these freight loads and/or LTL freight loadsassigned to an LHD will be converted to a scheduled run coveredby a Road Driver if the two (2) way movements are sufficient toconstitute a full-time job; occur for at least four (4) consecutiveweeks; and can meet all customer and service commitments.Terminals within thirty (30) mile driving distance from each othershall be considered one (1) terminal for the purpose of determiningif there is a “two-way” run.

(d) Line Haul Driver

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i. In order to create full-time bargaining unit jobs, replace outsidevendors utilized on one-way runs permitted under paragraph (c)above, and enhance the Company’s ability to compete, theCompany may create a new classification of employee named linehaul driver (LHD). The attached Addendum shall control howLHD’s are used and their terms of employment. Any run assignedto an LHD pursuant to paragraph (c) above shall be assigned to aRoad Driver once the LTL freight volume meets the criteria set forthin that paragraph for determining two-way runs.

ii. If a Road Driver’s job is cut for the day, the Road Driver will havethe option, in addition to those set forth in Article 5, Section 2(c), todisplace any LHD provided he will be able to meet his next bid starttime. If a Road Driver’s job is cancelled more than five (5) days in acalendar month, then the Road Driver shall have the right, in additionto the other rights set forth in Article 5, to take the job of any juniorLHD who is domiciled in that facility. In such event, the Road Drivershall maintain his regular rate of pay and benefits. The displacementrights in this paragraph do not in any way diminish the Road Drivers’seniority rights set forth in Article 5. If a Road Driver displaces a LHDpursuant to this paragraph, the displaced LHD shall be allowed to dis-place the junior LHD. If the facility is one in which a LHD only ter-minates his run, the Company will re-domicile the LHD run to thatfacility if it can do so and still meet customer commitments.

iii. In order to ensure that Road Driver jobs are protected from theimplementation of LHD positions, the following rules will apply inthose terminals into or out of which a LHD operates:

The Company will guarantee at each such terminal the number ofRoad Driver positions in existence as of ratification. This numbershall not be subject to reduction except for a demonstrated loss ofvolume, a change of operations pursuant to Article 40 or the equip-ment on a run being upsized. Any disputes regarding such reduc-tion shall be subject to review and approval by the IBT/UPSFCompetition Committee. No Road Driver position will be eliminat-ed as a result of the creation of a LHD position.

1. The Company shall not use a LHD to perform work assigned toa Road Driver or to avoid creating an additional Road Driver posi-

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tion at any terminal where the volume of freight increases suffi-ciently to require the creation of a full-time job.

2. The Joint UPSF/IBT Competition Committee will review andapprove or reject any LHD runs that may be proposed by UPSFreight. A LHD run will not be approved unless it replaces a ven-dor. In the event the parties do not agree, the LHD run shall not beimplemented.

3. The UPSF/IBT Competition Committee will review on a quar-terly basis the use of LHDs to ensure they are not being used to per-form work that contractually should be performed by Road Drivers.In the event the Committee finds that any LHD runs were createdwithout eliminating subcontracting, those runs shall be bid as RoadDriver runs pursuant to Article 5.

(e) As part of this Agreement, the Company will recall all RoadDrivers to full employment within their classification or the LHDclassification as per the memorandum of understanding, at all facil-ities where subcontractors are being used no later than ninety (90)days from the ratification of this Agreement. Full employment shallbe defined as a Road Driver receiving his/her daily guarantee inhis/her classification. The recall shall include Road Drivers laid offto the street as well as those working outside their classification.Once a Road Driver is returned to work all provisions of the con-tract will apply. The Company will guarantee at each terminal thatRoad Drivers recalled pursuant to this paragraph shall not be sub-ject to layoff except for a demonstrated loss of volume, a change ofoperations pursuant to Article 40 or the equipment on a run beingupsized. Any disputes regarding such reduction shall be subject toreview and approval by the IBT/UPSF Competition Committee. Norecalled Road Driver position will be eliminated as a result of thecreation of a LHD position.

(f) In addition to the protections set forth above, the Companyagrees that it will provide to the Union Chair of the TNUPSFNC amonthly report in writing detailing the number of runs completedand loads pulled by outside vendors sorted based on the originationand destination terminals. These monthly reports will also include asystem wide comparison of the total miles run by outside vendors

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versus the Company’s Road Drivers. Each report will include thedescribed data for the prior calendar month and will be providedwithin fifteen (15) calendar days of the beginning of the followingcalendar month.

ARTICLE 45AIR CONdITIONING

All newly manufactured road tractors regularly assigned to the fleetafter the effective date of this Agreement shall be equipped with airconditioning.

ARTICLE 46SUPERvISOR wORkING

The Employer agrees that the function of a supervisor is the super-vision of employees and not the work of the employees they super-vise. The Employer shall maintain a sufficient workforce to staff itsoperations with bargaining unit employees. Supervisors will notperform bargaining unit work until all reasonable efforts areexhausted to use bargaining unit employees.

ARTICLE 47MILEAGE RATES

Section 1. Mileage RatesOver-the-road drivers shall be paid the cents per mile shown belowfor all miles, as determined in Section 2.

Single/ Sleeper Triple Sleeper TripleDouble (per driver) (per driver)

7/1/13 0.6601 0.3482 0.6701 0.35421/1/14 0.6727 0.3549 0.6829 0.36101/1/15 0.6854 0.3615 0.6957 0.36781/1/16 0.6980 0.3682 0.7085 0.37451/1/17 0.7042 0.3715 0.7149 0.37797/1/17 0.7106 0.3748 0.7214 0.38131/1/18 0.7169 0.3782 0.7278 0.38477/1/18 0.7232 0.3815 0.7342 0.3881

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Section 2. Mileage determinationEmployees working under this Agreement shall be paid over routesdesignated by the Employer, for miles based on data provided by“Microsoft Streets and Trips” (or any future successor program). Adriver shall not go off-route without advance Company approval. Ifapproved, the driver shall document the additional miles driven.

ARTICLE 48JOINT COMPETITION COMMITTEE

A joint UPSF/IBT Competition Committee shall be created with anequal number of Employer and Union representatives. TheCommittee shall meet upon written request by either party for thepurpose of discussing and evaluating proposals which, if adopted bythe Committee, could create additional bargaining unit jobs, enablethe Employer to effectively compete with other companies, imple-ment new services and products, or change existing services.Nothing within this provision or Agreement shall require theEmployer to offer or maintain any particular service or product.

ARTICLE 49dURATION

This Agreement shall be in full force and effect from August 1,2013 to and including July 31, 2018, and shall continue from yearto year thereafter, unless written notice of desire to cancel or termi-nate this Agreement is served by either party upon the other at leastsixty (60) days prior to date of expiration.

Memorandum of UnderstandingUPS Freight and the Teamsters UPS Freight NegotiatingCommittee agree that:

The Company will implement a program to provide assistance to itsemployees who wish to obtain a CDL.

Letter of AgreementThe parties agree that an employee who becomes aware of an open-ing in the same classification at another service center may choose

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to transfer, at his or her own expense. If more than one employeeexpresses an interest in the position, seniority shall prevail. Theemployee shall endtail on the new seniority list, and shall maintainpre-transfer seniority for the purpose of determining benefits.

Addendum to the UPS Freight AgreementCovering Over-the-Road and Local Cartage

OperationsUPS Freight, hereinafter referred to as the “Employer” or“Company,” and the Teamsters National Negotiating Committee,hereinafter referred to as “TNUPSFNC” or “Union,” representingTeamster Local Unions affiliated with the InternationalBrotherhood of Teamsters, agree the UPS Freight Agreement(“UPSFA”) shall apply to the employees covered by this Addendumas specified below:

1. The following Articles of the UPSFA shall apply to employeescovered by this Addendum, except as may be modified in other sec-tions of this Addendum:

Articles 1, 2, 3, 4, 6, 7, 8, 9, 11, 12, 14, 15, 16, 17, 19, 20, 21, 22, 24,25, 27, 28, 29, 32, 33, 34, 35, 36, 38, 39, 40, 42, 46, 48 and 49.

2. The following sections of Articles of the UPSFA shall apply toemployees covered by this Addendum: Article 5, Sections 1(a), (b),(c), (f), and 3 and 5; Article 10, Section 1; Article 13(a), (c), (d), (e),(f) and (g); Article 18, Section 3; Article 23, Sections 1(b) and (d),2 and 3; Article 30, Section 3; and Article 37, Section 3.

3. The following Articles or portions of Articles shall not be applicableto employees covered by this Addendum: Article 5, Sections 1(d), (e),and (g), 2, 4, and 6; Article 10, Section 2; Article 13(b); Article 18,Sections 1, 2, and 4; Article 23, Section 1(a) and (c); Article 26; Article30, Sections 1 and 2; Article 31; Article 37, Sections 1 and 2; Article41, Article 43, Article 44, Article 45 and Article 47. Substitutions, ifnecessary, for these Articles or Sections are set forth below.

4. Article 1, Section 1 shall be modified to add a second paragraphthat reads:

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“This Agreement shall also cover, where already recognized, thoseemployees who are employed as a manifest clerk, OS&D clerk, dis-patch clerk, appointment clerk, outbound clerk, inbound clerk, orbilling clerk. A list of locations at which covered employees havebeen recognized is Attachment A to the Clerical Addendum.”

5. Article 1, Section 2 shall be modified to add a second paragraphthat reads:

“The execution of this Agreement on the part of the Employer shallalso cover all employees described in the second paragraph ofArticle 1, Section 1 in the bargaining unit at any existing terminalat which the TNUPSFNC has been certified or designated to act asthe collective bargaining representative. The following locals havebeen designated by the TNUPSFNC to represent covered employ-ees and, as such, are parties to this Addendum: 25, 41, 63, 89, 107,120, 135, 251, 299, 385, 431, 492, 523, 577, 612, 657, 667, 707,710, 728, 745, 891, and…”

6. As a substitution for those Article 5 provisions which the partiesagree will not apply to the employees covered by this Addendum,the following will apply:

Section 1.(d) For employees covered by this Addendum there shallbe two (2) seniority lists, one (1) for full-time clerks and one (1) forcasual clerks.

Section 1.(g) In developing the initial Clerks’ seniority list refer-enced above, the Company shall use the employee’s Company sen-iority date unless a particular employee transferred into his/her cur-rent service center from another service center. In such event, theemployee’s transfer date to the current service center shall be usedto develop the seniority lists.

Section 2. When it becomes necessary to reduce the working forcethe last employee hired on the casual seniority list shall be laid offfirst. If a clerk job is eliminated, the affected employee may bumpthe most junior employee within the classification provided thebumping employee is qualified to do the job. If a full-time clerk dis-places a casual clerk, he/she shall be governed by the four (4) hour

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guarantee. The bumping employee goes to the bottom of the classi-fication seniority list. If the employee exercises the right to bumpand receives a recall notice, the employee must return to the posi-tion from which he/she was laid off. Company benefits will be pro-vided in accordance with the terms of the applicable SPD.

Section 4.(a) Starting times by classification will be posted for bidon the Union bulletin board on a semi-annual basis. The bids willcontain a description of the clerical jobs that are posted. Bids shallremain posted for fourteen (14) calendar days. The most senioremployee bidding on the job shall be awarded the job.

Section 4.(b) Available new or vacated bargaining unit jobs will beposted within seven (7) calendar days. The bid will remain postedfor fourteen (14) calendar days on the Union bulletin board. Suchpostings shall include the start time and a description of the job.The most senior full-time employee bidding on the job shall beawarded the job, provided he or she is qualified. The resultingvacancy, or the initial vacancy, if no full-time employee is awardedit, shall be available for bid by part-time clerical employees, if any,in that service center. If there are no part-time clerical employeesin the service center, the Company shall have the right to fill theresulting vacancy, or the initial vacancy if it is not awarded, by anew hire. If a part-time employee is awarded the full-time vacancy,the Company shall have the right to fill it with a new hire.

If an employee is going to be off work for more than forty-five (45)days, the job will go up for bid, provided however, when theemployee returns he/she shall return to his/her original bid job. Anybidder must be available and qualified to perform the work.

7. As a substitution for those Article 18 provisions which the par-ties agree will not apply to employees covered by this Addendum,the following will apply:

Section 2. Casual and full-time employees’ schedules will be post-ed by Friday of the preceding workweek if there is any change. Ifthere is no change, the schedules need not be posted. An employ-ee’s start time can be altered by this posting by up to two (2) hoursof its normal time. The Company may also alter the start time on a

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daily basis by more than two (2) hours, provided the employee isnotified prior to reporting to work. All employees shall be sched-uled for five (5) consecutive workdays, either Monday throughFriday or Tuesday through Saturday. Full-time employees shall beguaranteed eight (8) hours pay per day when put to work and thestandard workweek shall be forty (40) hours per week. Casualemployees shall be guaranteed four (4) hours per day on any dayhe/she is scheduled and reports to work.

One-and-one-half (1 ½) times the regular hourly rate shall be paidfor all work performed on the seventh (7th) consecutive day ofwork, except where the seventh (7th) day of work falls on Sunday,in which case double time shall be paid.

8. Any Article or Section of the UPSFA that is applicable toemployees covered by this Addendum and references “casual”employees shall be deemed to cover part-time clerks.

9. As a substitution for Article 44 of the UPSFA, the parties agreethat the following will apply to employees covered by thisAddendum:

For the purpose of preserving work and job opportunities for theemployees covered by this Agreement, the Employer agrees that nowork or services of the kind, nature or type, and including newoperations or buildings, covered by, presently performed, or here-after assigned to the collective bargaining unit will be subcontract-ed, transferred, leased, assigned or conveyed in whole or in part toany other plant, person or non-unit employees, unless otherwiseprovided in this Agreement. The Employer may not subcontractwork in any classification for the purpose of avoiding overtime, orto avoid filling existing, or creating additional bargaining unit posi-tions. The Employer may not subcontract work in any classificationif any employee who normally performs such work is on layoff.

10. As a substitution for Article 30, Sections 1 and 2, the followingwill apply:

All covered employees shall continue to receive their scheduled restand lunch breaks.

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Article 49

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11. As a substitution for paragraph 9 of the May 11, 2009 MOUbetween the parties, the following shall apply:

The Company will provide employees covered by this Addendumtwo (2) hour show-up pay; however, the parties agree the employeeshall first be afforded his or her right under Article 5 to displace lesssenior employees provided work is available. The two (2) hourshow-up pay shall apply if no work is available.

12. The parties agree that the following provisions shall constitutea new Article 23, Section 4 applicable only to those employees cov-ered by this Addendum:

Section 4. Technological change shall be defined as any significantchange in equipment or materials which results in a significantchange in the work of the bargaining unit or diminishes the numberof workers in the bargaining unit.

(a). The Employer and the Union agree to establish a NationalTeamster/UPS Freight Committee for Technological Change, con-sisting of an equal number of representatives from the Union andUPS Freight. The Committee shall meet in conjunction with theNational Grievance Panel as necessary to review any planned tech-nological changes covered by this Section.

(b). The Employer will advise the National Teamster/UPS FreightCommittee for Technological Change of any proposed technologi-cal changes at least six (6) months prior to the implementation ofsuch change except where the change was later determined in whichcase the Employer shall provide as much notice as possible.

(c). The Employer shall be required to provide the NationalTeamster/UPS Freight Committee for Technological Change, uponwritten request, any relevant information to the extent availableregarding the technological changes.

(d). The Employer will meet with if requested, the NationalTeamster/UPS Freight Committee for Technological Change,promptly after notification to negotiate regarding the effects of theproposed technological changes.

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(e). If a technological change creates new work that replaces,enhances or modifies bargaining unit work, bargaining unit employ-ees will perform that new or modified work. The Employer shallprovide bargaining unit employees with training required to utilizethe new technology, if necessary.

(f). In the event that the National Committee cannot reach agree-ment on the dispute, either party may refer all outstanding disputesto the National Grievance Committee for resolution in accordancewith the provisions of Article 7 in order to determine if theEmployer has violated the provisions of this Section or if thechange will result in a violation of any other provision of the col-lective bargaining agreement.

13. The only part of any prior Letter or Memorandum ofUnderstanding, Letter of Agreement, or settlement between the par-ties under the UPSFA that will apply to the employees covered bythis Addendum are:

(i) The Letter of Understanding on Article 8, Section 1; and

(ii) Paragraphs 2, 3, 4, and 7 (except for the reference to the 90%employee) of the May 11, 2009 MOU.

National UPS Freight Agreement“Zone” Addendum

UPS Freight (“Employer” or “Company”) and the TeamstersNational UPS Freight Negotiating Committee (“Union”) agree tothe following as an Addendum to the UPS Freight Agreement(“NFA”):

1. This Addendum applies to those employees represented bythe Union who have been hired to perform functions describedin the NFA, in geographical areas which were previously serv-iced by a vendor. The employees and geographical zones cov-ered by this Addendum are as described in Attachment A;

2. The NFA shall apply to employees covered by thisAddendum except as modified in this Section:

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Article 49

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(a) Article 18, Section 2, shall be amended to delete therequirement to provide an eight (8) hour guarantee per day forthe 90% employees. However, the parties agree that when driv-ers are not working a full 8 hours, vendors will not be used inthat geographical area unless necessary due to equipment needsor service reasons;

(b) Employees whose pay rates are above the scale in Article 26,shall retain their current pay rates until such time as the pay rate is commensurate with the Agreement. At such time, theemployee will receive contractual increases due beyond thatdate;

(c) In recognition of the fact that employees covered by thisAddendum do not have a service center in their establishedzone, Articles 19 and 33 of the NFA shall not apply, but anyestablished practices in that zone relating to what is made avail-able to the employees will continue to be observed.

(d) In recognition of the fact that employees covered by thisAddendum may be requested to perform business development(“BD”) work in their assigned zones, the parties agree that suchassignments shall not be a basis to claim that business develop-ment functions are covered bargaining unit work; and

(e) In recognition of the fact that the Company’s conversion ofzones from vendor to employees is experimental and can onlybe successful if costs are controlled, Article 44 of the NFA shallbe amended to also permit the use of vendors in the followingcircumstances:

(i) Vendors can be used if inbound and/or outbound volumeexceeds the capacity of existing employees or the capabilityof exceeding equipment. The Company commits it will notuse this provision to eliminate or reduce overtime or toavoid hiring additional new bargaining unit employees if thegrowth in volume makes it economically feasible;

(ii) Vendors may be used to cover for employee absences,including, but not limited to, vacations and any approved

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Article 49

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leave of absence. Before using a vendor, the Company isobligated to first order this work to any employee in thezone who is in a layoff status, if any; then to any UPSFreight qualified employee on lay-off within service centerthat feeds that zone area provided the Company has suffi-cient notice of the absence; and

(iii) The Company retains the right to revert to vendor cov-erage if volume levels do not make it economically feasibleto continue to provide service in that area through Companyemployees. If the Company determines that it is not eco-nomically feasible to continue service in any area, it shallprovide the Union thirty (30) days notice of the transition.The Company will meet with the Union within the thirty(30) days to review the data in order to determine if there ismutual agreement on the economic feasibility. Mutualagreement will not be unreasonably withheld by the parties.If a vendor is implemented then the Company will engage ineffects bargaining with the Union.

3. This Addendum shall continue to apply to the zones listed inAttachment A until such time as the Company opens a servicecenter in that zone. The terms of the existing NFA shall apply infull at that time.

4. Additional employees may become covered by thisAddendum if the Union obtains representational rights to any“Zone” employees in the future.

5. This Addendum shall remain in effect for the duration of theunderlying NFA.

Memorandum of UnderstandingUPS Freight agrees that it will notify the TNUPSFNC in the eventit intends to increase in any significant way the number(s) of runsthat include a lay over in excess of fourteen (14) hours. If suchnotice is provided, the Employer, upon request, will meet with theTNUPSFNC to determine the terms on which the layovers on theseruns will be implemented.

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Article 26, Section 3

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Letter of UnderstandingThe Parties agree that employees on the payroll on the date of rati-fication who possess a CDL and are classified as Dock Leadman orJockey will continue to receive a twenty cents ($0.20) per hour pre-mium. Employees on the payroll on the date of ratification with aCDL and are classified as Dock Worker will continue to receive athirty-five cents ($0.35) per hour premium. Casual employees onthe payroll on the date of ratification with a CDL shall continue toreceive a twenty-five cents ($0.25) per hour premium.

Letter of UnderstandingThe parties agree that Article 8, Section 1 (Picket Lines) shall notapply to secondary (as opposed to primary) picketing activities or toinformational leafleting or any other picketing not intended to pre-vent UPS employees from performing their assignments, whethersuch activities occur at the Company’s locations, en route, or at thelocations of its customers. In the event the Company knows that itis dispatching employees to a customer at which picketing is occur-ring, or dispatching employees on routes on which employees willencounter such activities, it shall notify the Union prior to dispatch,if possible.

Article 8, Section 1 also shall not apply to activities against theCompany by its employees which are in violation of thisAgreement, or which have not been initiated or authorized by theUnion.

Memorandum of UnderstandingTeamsters National UPS Freight Negotiating Committee (Union)and UPS Freight (“UPS” or “Employer”) agree to the following inconnection with Article 5, Section 2 of their National FreightAgreement:

1. It is the parties’ intent that the phrase “…last employee hired onthe affected classification seniority list…” is a reference to the datean individual became a full-time employee with the Employer, notthe date the employee entered the job classification in which thelayoff may be occurring.

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Article 28

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2. This Memorandum of Understanding (MOU) shall becomeeffective on the date it is signed and will be applied prospec-tively. However, the parties agree that any pending grievances concerning the Company’s use of classification seniority to identi-fy employees for layoff, shall be considered settled on the basis of this MOU. The Company shall apply the language in paragraph 1 in those cases and take the steps necessary to notify those employ-ees who need to be recalled. No monetary payments shall be made.

3. This MOU shall not apply to any provision of the contract otherthan Article 5, Section 2.

Memorandum of Understanding1. The parties agree that the Company may continue its practiceregarding 4 day /10 hour work schedules where they were in placeat the time of ratification. This would also apply to locations wherethe parties have negotiated 4/10’s since ratification. Overtime willbe after 10 hours, and any future implementations would need to beagreed to locally. Additionally, if any of the nine (9) namedHolidays in Article 25, Section 4 occur on the regular scheduledworkday for a 4/10 employee, the employee shall receive 10 hoursstraight time pay for the Holiday. 4/10 drivers working on a holidaywill be included in item # 4 below. Employees holding 4/10 job bidswill be required to work 120 work reports as otherwise defined inArticle 25, Section 5 to obtain vacation or 32 reports to obtain thepartial vacation calculation.

2. The parties agree that the Company may continue its practiceregarding Sunday through Thursday work week schedules as theyexisted at the time of ratification. This would also apply to locationswhere the parties negotiated Sun-Thur work schedules since ratifi-cation. Any future implementations would need to be agreed tolocally.

3. The parties agree that Full-Time employees laid off and displac-ing casual employees shall not be reduced to the casual rate of pay;rather, they shall be paid the full-time rate for the job performed.

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Article 29, Section 1

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Full-Time employees laid off and in progression will slot to thesame progression step in the job they are performing. The full-timeemployees that were paid the casual rate while on layoff shallreceive back pay.

4. The parties agree that employees who start and work on aHoliday shall be compensated at one and one-half (1 ½) their hourlyrate; this does not pertain to employees whose regular scheduledworkday concludes on a Holiday. The Company may continue itspractice of moving the Holiday for operational needs, but must payone and one-half (1 ½) for employees who start work on a Holiday.The Company shall not change the start times in an effort to negatethe Holiday Premiums.

5. The Company shall pay any sleeper team delays as follows: after15 minutes each driver shall be paid the appropriate Local Cartagewage rate for P & D as specified in Article 26, Section 4 or equiva-lent progression step for the duration of the delay.

6. If a mileage road driver experiences a traffic delay in excess of 15minutes, then he or she shall be paid the appropriate Local Cartagewage rate for P & D as specified in Article 26, Section 4 back to thefirst minute. A traffic delay is defined as the wheels being completelystopped for the duration of the delay. This does not include typical rushhour traffic where the truck may be moving very slowly or starting andstopping intermittently. An example of a traffic delay would be whena highway is completely shut down for 15 minutes or more due to anincident and the vehicles cannot move at all.

7. Extra work that is offered in seniority order on non-scheduledwork days does not have an 8-hour guarantee for any 90% employ-ee. The employee may choose to either (1) get paid actual hoursworked for the day, or (2) ask for four (4) hours of work. If theemployee asks for at least four (4) hours of work, then the Companyshall provide at least four (4) hours provided that (a) the work isavailable, and (b) the employee is qualified to perform the work.

8. The Company shall continue its practice of 2-hour show up pay;however, the parties agree the employee shall first be afforded hisor her right under Article 5 to displace less senior employees pro-

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Article 29, Section 2

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vided work is available. If no work is available and the employeewas not informed of the run being cut (or other lack of work) untilhe or she arrived at the service center, then the 2-hour show up payshall apply.

Memorandum of UnderstandingUPS Freight (“Employer”) and the Teamsters National UPS FreightNegotiating Committee (“Union”) agree to the followingMemorandum of Understanding (MOU):

(1) The parties agree that the following mileage rates will becomeapplicable on the dates specified, to the movement of double 40’sand 48’s trailers within the state of Florida:

7-1-2013—-.66511-1-2014—-.67781-1-2015—-.69061-1-2016—-.70331-1-2017—-.70967-1-2017—-.71601-1-2018—-.72247-1-2018—-.7287

These rates will be applied in the same manner as the mileage ratesin Article 47, Section 1 of the UPS Freight Agreement.

(2) The parties agree that this MOU will remain in effect until July31, 2018.

(3) This MOU shall be non-precedent setting and shall not be citedfor any purpose except enforcement of its terms.

Memorandum of UnderstandingUPS Freight (UPS) and the Teamsters National UPS FreightNegotiating Committee (Union) agree to the following in connec-tion with the former Teamster-represented UPS employees who arein a retired status as of December 31, 2013 and receiving retireemedical coverage through a UPS sponsored plan:

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Article 29, Section 2

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1) Retirees in UPS sponsored plans will have the followingcontribution rates:

Effective 1-1-2014:Single-fifty dollars ($50.00)/retiree plus-one hundred dollars($100.00)

Effective 1-1-2015:Single-one hundred dollars ($100.00)/retiree plus-two hundreddollars ($200.00)

Effective 1-1-2016:Single-one hundred and fifty dollars ($150.00)/retiree plus-three hundred dollars ($300.00)

2) Effective January 1, 2014, the current retiree medical plan will be modified to provide an 80/20 benefit in network;70/30 benefit out-of-network, and an annual deductible of$200/$400.

3) Nothing within this paragraph is intended to alter UPS rightswith regard to the retiree plans as specified in the associatedSummary Plan Descriptions.

Memorandum of UnderstandingUPS Freight (“Employer”) and the Teamsters National UPS FreightNegotiating Committee (“Union”) agree to the followingMemorandum of Understanding (MOU):

(1) The parties agree that the benefits to be provided UPSFreight employees upon transition to Central States Health&Welfare Plan (CS H&W Plan) will mirror those currently pro-vided by the UPS Health & Welfare Package Select. Thisincludes having Kaiser as an option in California.

(2) UPS will provide the benefits of the CS H&W Plan sched-ule MM200 as a no cost option for UPS Freight employees whoelect not to make a monthly contribution.

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Article 29, Section 3

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(3) Nothing within this MOU is intended to change the powersor duties of the trustees of the CS H&W Plan.

Letter of AgreementUPS Freight (“UPS” or “Company”) and Teamsters National UPSFreight Negotiating Committee (“Union”) agree to the following:

All full and casual clerical employees who received either of thegeneral wage increases provided by the Addendum dated May 24,2012, but as of April 25, 2013, were still below the rates providedin the new hire progression based upon his/her years of service,shall receive an increase of One Dollar and Forty-Three Cents($1.43) in two equal installments. The first increase of Seventy-One and One-Half Cents ($0.715) shall be on August 1, 2013. Thesecond equal increase shall be on August 1, 2014. This is in addi-tion to the general wage increases.

Memorandum of UnderstandingUPS Freight (“Employer”) and the Teamsters National UPS FreightNegotiating Committee (“Union”) agree to the followingMemorandum of Understanding (MOU):

Article 44, paragraph (e) shall not apply to any Road Driver who isnot working because he declined to follow his work after anapproved change of operations. In addition, any driver who declinesa recall opportunity pursuant to Article 44 paragraph (e) shall nolonger be considered laid off in relation to Article 44. Any driverwho accepts a LHD position shall maintain their full pay and bene-fits as outlined in the CBA and all Memorandum of Understandingsapplicable to road drivers. This shall include but not be limited toArticles 5, 18, 25 and 26.

Memorandum of UnderstandingThe thirty (30) mile distance referenced in Article 44 shall includebut not be limited to the following pairs of terminals:

FRM – BAYHOU – HSTSAN – SDG

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Article 29, Section 3

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LOS – LAXSCM – SACPRT – PORFON – RIASAT – SEALAX – OCYPEN – PHLOCY – LOSSOH – CGOGAR – DALRFL – CLDCRT – MOOYOR – HRSFWR – DALPAL – CGO

Line Haul driver AddendumThe following rules shall apply to Line Haul Drivers (LHD):

(a) All Articles of the UPS Freight Agreement (“UPSFA”) shallapply to LHDs, except Articles 5, 18, 25, 26, 41, 43, 44 and 47.Further, Article 21, Section 3 and Article 27, Section 3.3 shall applyto LHDs provided the employee has the seniority and is qualified toperform the available inside work.

(b) With regard to seniority, Article 5, Section 1(a), (b) and (c) andSection 5 shall apply. LHDs shall have their own seniority list forlayoff, recall and bumping rights. The notification procedure setforth in Article 5, Section 3 shall apply. LHDs shall not be subjectto being bumped by employees in other job classifications, exceptas provided in Article 44 (d). LHDs may bump casuals only, pro-vided the employee has the company seniority and necessary qual-ifications.

(c) The following work rules shall apply to LHDs:

(i) LHDs work week may be any combination of days in awork week.

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Article 29, Section 3

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(ii) LHDs may have different start times within the work week.

(iii) A LHD may be required to start his day at different timesand facilities within the work week depending on the originof his load.

(iv) Runs shall be as assigned by the Company. However, if aparticular workweek has consistent work days and starttimes it shall be subject to bid.

(d) Available new or vacated LHD jobs will be posted within seven(7) calendar days. The job opening will remain posted for seven (7)calendar days. The most senior casual employee bidding on the jobshall be awarded the job, provided he or she is qualified. If there isno qualified casual employee to fill the job, the Company may hirea new employee. If a current casual employee is awarded the job,the Company shall have the right to fill that vacancy with a newhire.

An employee in the LHD classification may bid on a job in the localcartage or road classification pursuant to Article 5. Full-timeemployees at the service center shall have priority over casuals andLHDs. If no full-time employee at the service center bids on thejob, the seniority date used to determine bidding priority amongcasuals and LHDs at the service center shall be their date of hire. Ifawarded such a bid, the LHD will be slotted into the progression forthat job according to his/her seniority and immediately beginreceiving the appropriate benefits for the job.

(e) LHDs shall be entitled to the following benefits:

(i) Medical Benefits: LHDs will be provided medical benefitsthrough Central States. Plan B shall be the schedule of ben-efits. However, casual employees that are awarded a LHDposition shall maintain their current benefits.

(ii) 401(K) Plan: The LHD shall be eligible to participate inthe Teamster UPS National 401(K) Tax Deferred SavingsPlan in accordance with the terms of that Plan. TheEmployer shall withhold from the employee’s earnings,

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Article 29, Section 3

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amounts mutually agreed between the Employer and theemployee and deposit such monies into a 401(K) accountin the employee’s name in compliance with the InternalRevenue Code and ERISA.

(iii) Holidays: LHDs shall become eligible for holiday payafter one (1) year of employment. All work performed byan LHD on a holiday shall be at a straight time rate.

(iv) Vacations: Article 25, Section 5 shall apply to LHD, exceptthe maximum number of paid vacation days shall be ten(10). A casual employee awarded a LHD position shall begiven the appropriate credit for vacation accrual.

(v) Retirement: New employees hired as LHDs shall becomeParticipants in the UPS Pension Plan on the earliestJanuary 1 or July 1 following the attainment of age 21 andthe completion of not less than 750 Hours of Service withthe Company in the twelve month period following his dateof employment. All time in service as a LHD by any newemployee shall count toward the vesting requirements inthe UPS Pension Plan. After becoming a Participant, LHDswill earn a monthly accrued benefit payable at normalretirement age equal to fifty dollars ($50.00) per year timesyears of UPS Freight Benefit Service. In years in which anemployee has less than fifteen hundred (1500) hours, LHDsshall earn one month of UPS Freight Benefit Service foreach 125 hours of work completed and thereby earning aprorated share of the annual fifty dollar ($50.00) accrualrate. There shall be no limit on the number of years of UPSFreight Benefit Service which may be accrued. Casualemployees that are awarded LHD positions shall maintaintheir current benefits.

(vi) Other Benefits: UPS Freight may decide, whether otherexisting benefits programs such as but not limited to safetybonuses, discounted stock purchase plans, and educationalassistance may be extended, modified or discontinued forthis job classification at the Employer’s discretion.

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Article 29, Section 3

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(f) Wages: LHDs shall be paid in accordance with the following:

Start Three Year Single $0.42 $0.44 Sleeper (per driver) $0.2129 $0.2209 Triple $0.4257 $0.4474 Sleeper Triple (per driver) $0.2157 $0.2245

The compensation LHDs receive as a result of the application of themileage rate to miles driven shall be the total compensation towhich he is entitled for his road driving and all incidental duties(including, but not limited to, any rest breaks to which the employ-ee may be entitled, pre-trip inspections, in-route breaks, in-route tirechecks, logging, post-trip inspection, vehicle condition report, traf-fic delays, AVR arrival/dispatches, reporting of breakdown, report-ing of accidents, tractor wash, check bay time, reefer checks, drops& hooks, fueling and pre-trip shop time). Except as otherwise spec-ified in this Agreement, time spent waiting for dispatch in excess ofone (1) hour at a non-domiciled location, unless the run is a layoveror doing any work not incidental to driving shall receive fifteen dol-lars ($15.00) per hour.

(g) The Joint IBT/UPSF Competition Committee shall have theauthority to review LHD runs that may be proposed by UPS Freightto create a two-way run. UPSF and the Union also agree to reviewand approve proposed runs that may be inclusive of runs currentlybeing performed by vendors. In the event the parties do not agree,the runs shall not be implemented.

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Article 29, Section 3